Manila Electric Company (Meralco) Reported P23.2 Billion in Consolidated Core Net Income in H1-2024, Up 21%

Manila Electric Company (Meralco) reported that consolidated core net income (CCNI) in the first six (6) months of 2024 increased by 21% to P23.2 billion from P19.2 billion in the same period last year, driven by higher sales volumes of the distribution utility (DU) and increased sales in the 2nd quarter due to the higher availability of power generation plants.

Of the total CCNI, the distribution business continued to account for the biggest share of 55% or Pesos 12.8 billion. Power generation contributed 27% or Pesos 6.2 billion, while the retail electricity supply (RES) and non-electricity businesses brought in a combined Pesos 4.2 billion or 18%.

Consolidated Reported Net Income rose by 26% to Pesos 22.4 billion from Pesos 17.9 billion last year.

Core EPS amounted to Pesos 20.590, up 21% versus last year. Reported EPS increased by 26% to Pesos 19.911.

Consolidated revenues grew by 6% to Pesos 237.5 billion from Pesos 224.8 billion in 2023, mainly due to higher volumes distributed by the DU.

Meralco spent Pesos 19.9 billion in capital expenditures (CAPEX) in the first semester. Pesos 10.0 billion were used for the distribution networks projects that included new connections, asset renewals, and load growth projects. The balance was spent on the development of solar projects of MGen Renewable Energy, Inc. (MGreen), acquisition of additional 475 telecommunication towers, and the construction of build-to[1]suit (BTS) towers by Miescor Infrastructure Development Corporation (MIDC).

Operating expenses (OPEX) increased by 8% to Pesos 19.5 billion mainly due to (i) rigorous maintenance activities of DU facilities, including those related to overloaded transformers during high heat index periods; (ii) higher cost of software maintenance and subscriptions; and (iii) inclusion of expenses of SP New Energy Corporation (SPNEC) this year, following Meralco PowerGen Corporation’s (MGen) acquisition of a controlling stake in December 2023.

Consolidated interest‐bearing debt stood at Pesos 99.6 billion, including the Pesos 58.3 billion total debt of subsidiaries. Meralco’s debt maturities are well spread through 2039. Net debt as at June 30, 2024 was at Pesos 9.7 billion and net debt to EBITDA stood at 0.13x.

On July 29, 2024, the Meralco BOD approved the declaration of interim cash dividends amounting to Pesos 10.295 per share to all shareholders of record as at August 28, 2024, payable on September 23, 2024. This represents 50% of Meralco’s Core EPS.