Manila: The Manila Electric Company (Meralco) on Monday announced a 14% increase in its consolidated core net income (CCNI), reaching PHP40 billion by the end of September. This growth was principally supported by the company's distribution utility (DU) business.
According to Philippines News Agency, in a disclosure to the Philippine Stock Exchange (PSE), Meralco detailed that its DU business accounted for 55% of the total income, amounting to PHP21.9 billion. This was followed by power generation, which contributed 37% or PHP14.7 billion, and retail electricity supply (RES) along with non-electric business, contributing 8% or PHP3.4 billion.
Meralco highlighted that while the DU business continues to be the primary income contributor, the power generation segment demonstrated significant improvement with a 63% rise in its contribution to the CCNI. This increase was attributed to earnings from liquefied natural gas (LNG) ventures, including Chromite Gas Holdings, Inc. (Chromite Gas) from February this year, and PacificLight Power Pte. Ltd. (PacificLight), alongside robust revenue gains from participation in the Reserve Market.
Chromite Gas is a joint venture between Meralco PowerGen Corporation (MGEN) and AboitizPower's Therma NatGas Power, Inc., which has invested significantly in gas power plants and an LNG import terminal in Batangas. Meanwhile, PacificLight, an electricity retailer based in Singapore, is partly owned by MGEN in collaboration with the Hong Kong-based investment firm First Pacific Group.
Conversely, the DU business saw a 0.4% decline in energy sales, attributed to prolonged periods of adverse weather conditions that impacted demand in residential and commercial sectors.
Meralco Chair Manuel Pangilinan expressed optimism about achieving the full-year core profit target of PHP50 billion, citing the solid performance of the power generation segment and the steady growth of the core distribution business as of the end of September. Pangilinan attributed this confidence to the Energy Regulatory Commission's (ERC) recent rate adjustment policy, the Rationalized Rules for Setting Distribution Wheeling Rates (RRDWR), and the forthcoming implementation of ERC's First Regulatory Period (1RP), which Meralco is set to qualify for from July 1, 2026, to June 30, 2030.
Moreover, Pangilinan emphasized the significance of the Philippine Nuclear Energy Safety Act, reflecting the nation's commitment to advancing nuclear energy development to ensure long-term energy security and sustainability.
