Meralco books P9B core net income in Q1, up 40%

The Manila Electric Company (Meralco) posted double-digit growth in its core earnings in the first three months of 2023.

In a disclosure to the Philippine Stock Exchange on Tuesday, Meralco reported a consolidated core net income of P9 billion in the January to March period, up 40% from a year earlier.

Consolidated revenues also grew by 23% to P105.6 billion from P85.9 billion year-on-year “mainly due to higher pass-through charges resulting from the increase in natural gas prices, depreciation of the peso against the US dollar which averaged at P54.813 during the first three months of 2023 versus P51.573 during the same period last year, and increase in purchases from the Wholesale Electricity Spot Market; higher power generation charges due to increase in fuel prices; and growth in volumes sold.”

Meralco said its average retail rate increased during the period by 17% to P10.41 per kilowatt-hour (KWh) from P8.89 per kWh year-on-year.

The power distributor said it ended the first quarter of 2023 with 7.7 million customers, up 3% from 7.5 million a year earlier as “energization of new customers for both ordinary service and project-covered applications further continued.”

“Meralco’s operational and financial performance in this first quarter indicate that we are off to a good start. In its latest Economic Outlook, the Asian Development Bank expects the Philippine economy to continue on its expansion track with 6% growth this year, and deceleration of inflation starting the second half of 2023,” said Meralco chairman Manuel V. Pangilinan. —VAL, GMA Integrated News