Meralco powers up profit by 37 percent in 2023

February 27, 2024 | 12:00am

MANILA, Philippines — Manila Electric Co. (Meralco), the country’s biggest power utility, said its core earnings went up by 37 percent to P37.1 billion last year, powered by contributions from its power generation and retail electricity businesses, as well as the continued increase in energy sold by its distribution utility business.

In a disclosure to the Philippine Stock Exchange, Meralco said its core net income – which stripped off the effect of foreign exchange gains or losses, impairment charges, mark-to-market adjustments and other one-time, exceptional transactions, reached P37.1 billion in 2023, besting 2022’s P27.1 billion.

Consolidated revenues stood at P443.6 billion, up by four percent from P426.5 billion “due to the combined effect of the increase in energy sales of the distribution utility and the downward impact of the DRTU refund in 2022.”

“I daresay that Meralco’s 2023 performance has exceeded expectations,” Meralco chairman and CEO Manuel V. Pangilinan said.

Last year, Meralco’s average retail rate increased by 11 percent to P10.55 per kilowatt-hour due to the 11 percent increase in generation charge.

Meanwhile, average distribution charge accounted for 14 percent of the retail rate.

The power utility provider’s approved tariff is at P1.3522 per kilowatt hour.

Consolidated distribution utility energy sales volume grew by four percent to 51,044 gigawatt-hours.

The commercial segment accounted for 37 percent of Meralco’s sales, the residential segment remained at 35 percent, while industrial segment declined to 28 percent.

“Our strategic expansion and social development initiatives have always been anchored on our firm commitment to create additional and transformative value to our stakeholders, power the country’s economic progress, and contribute further to the advancement of the government’s socio-economic agenda,” Pangilinan said.

Moreover, the outlook for 2024’s bottom line “looks good,” Meralco COO Ronnie Aperocho said in a media briefing.

“[So far], we don’t see significant problems,” Pangilinan said, likewise seeing a positive outlook for this year’s income.