By Sheldeen Joy Talavera, Reporter
POWER DISTRIBUTOR Manila Electric Co. (Meralco) is on track to hit its target earnings of P50 billion for this year, driven by its power generation business, its chairman said.
At a press briefing on Monday, Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said the company is on track for “low double digits” over last year’s P45.1-billion earnings.
“The biggest growth will come from generation,” Mr. Pangilinan said.
Betty C. Siy-Yap, Meralco’s senior vice-president and chief finance officer, said Meralco saw its core net income increase by 9.5% to P14.4 billion from a year earlier, driven by solid contributions from its power distribution and generation businesses.
Revenues declined by 2% to P130.7 billion due to lower pass-through charges and the implementation of a refund.
For the six months ending in June, the power distributor reported a 10% increase in its core net income to P25.54 billion from P23.21 billion in the same period last year.
Of this total, the distribution business accounted for 54%, power generation contributed P13.7 billion or 37%, while retail electricity supply and non-electricity businesses accounted for 9%.
Gross revenues climbed by 3% to P245.22 billion from P237.48 billion, driven by higher pass-through charges, an increase in sales volume from the distribution utility and retail electricity supply, and higher revenues from power generation in the reserve market.
Residential sales volume rose by 0.7% to 9,778 gigawatt-hours (GWh), due to steady growth in newly energized accounts offsetting flat demand.
Commercial sales volume climbed by 0.3% to 10,103 GWh, supported by the ramp-up and expansion in retail and restaurant sectors, which countered the impact of office vacancies due to the exit of Philippine offshore gaming operators.
Industrial sales increased by 0.5% to 7,137 GWh, as growth in the semiconductor and cement sectors and a recovery in steel offset the decline from operational shifts in food and beverage and the termination of embedded generation accounts.
By the end of the first half, consolidated customer count had reached 8.1 million, marking a 3% increase from 7.9 million in the same period last year.
“As we move into the second half, we remain focused on achieving key milestones that will enable us to meet our full-year profit target and business goals,” Mr. Pangilinan said.
COAL POWER PROJECT
Emmanuel V. Rubio, president and chief executive officer of Meralco PowerGen Corp. (MGen), announced that the Department of Energy (DoE) had reissued the “committed capacity” status for its Atimonan Energy Power Plant project, reaffirming that the project is outside the coverage of the coal moratorium.
MGen is the power generation arm of Meralco.
Following the go-signal from the government, MGen, through its subsidiary Atimonan One Energy, Inc., is set to pursue the development of the 1,200-megawatt ultra-supercritical coal-fired power plant, beginning with the processing of the required additional permits through the Energy Virtual One-Stop Shop.
“As MGen plays a key role in ensuring the country’s energy security and leading the energy transition, our investment in Atimonan will help address today’s needs while preparing for tomorrow’s opportunities,” Mr. Rubio said.
In 2020, the DoE issued a moratorium on the development of new coal-fired power plants.
Meralco’s majority owner, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of the PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.
