Meralco nine-month reported profit rises 21% to PHP 44.7 billion
Manila Electric Company (Meralco) reported a 21% year-on-year increase in nine-month reported net income to PHP 44.7 billion, as stronger generation and retail electricity supply contributions complemented its distribution business.
Consolidated core net income increased 12% to PHP 44.8 billion, while revenue rose 19% to PHP 443 billion, according to Meralco’s October 28 disclosure. Core earnings exclude foreign exchange effects and other one-time, exceptional transactions.
Distribution contributed PHP 20.1 billion, or 45% of core earnings. Power generation contributed PHP 18.2 billion, or 41%, up 24% year on year, while retail supply and non-electricity businesses accounted for the remaining PHP 6.5 billion.
“We are realizing gains from investments made in previous years, particularly through MGEN that has been steadily increasing its earnings contribution, and the strategic integration and continued expansion of the RES business,” Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said in the release.
Meralco’s power generation business, MGEN, delivered 21,419 gigawatt-hours (GWh), up 7%. The company attributed growth to stronger output from liquefied natural gas and thermal plants, alongside the start of MTerra Solar’s commercial operations on August 26.
Distribution electricity sales reached 41,054 GWh, compared with 40,719 GWh a year earlier. Its customer base expanded 2% to 8.4 million, while retail electricity supply (RES) volumes increased 7% to 5,914 GWh.
Revenue growth also reflected higher distribution pass-through charges, which cover costs collected from customers for other electricity industry participants.
Meralco maintained its full-year consolidated core net income guidance of approximately PHP 56.6 billion, barring significant unforeseen developments.
Consolidated capital expenditure reached PHP 76 billion as of end-September. Of this, PHP 54.6 billion went to MGEN’s renewable energy and battery storage projects, while PHP 21.2 billion funded distribution network modernization, new connections, and other infrastructure.
Separately, Meralco said it received an Energy Regulatory Commission (ERC) decision on October 26 approving an average distribution tariff of PHP 1.50 per kilowatt-hour for July 2026–June 2030. The approved tariff covers the distribution component rather than the total electricity rate.
“The ERC’s approval of our long-delayed rate reset marks an important milestone, providing greater regulatory certainty to advance critical investments in network reliability, modernization, and digitalization,” Pangilinan said.
Source: Power Philippines