Manny Pangilinan sees ‘tough year’ overall for PH economy

Pangilinan-led Manila Electric Co. (Meralco) on Monday said it is still looking to grow its core net income by double digit this year, even as its top official expects a “tough year” overall for the Philippine economy amid the downgrades in the projections done by multinational agencies.

In a briefing in the company’s headquarters in Pasig City, Meralco chairman and chief executive officer Manuel Pangilinan cited the downgrades of multinational institutions such as the Asian Development Bank (ADB) and the World Bank on their projections for Philippine economic growth this year.

“Well, you’ve seen the first quarter results, medyo [quite] okay, and I think it’s gonna be a tough year overall for the economy,” he told reporters.

“It’s sort of an indicator that it’s going to be a tough year for the economy for a number of reasons. Probably early days to give a definitive outlook for the full year, but our target is to be able to produce double-digit growth in our core income, low double-digit growth in terms of core net income,” he added.

Pangilinan in February said he is encouraging management to achieve at least a P50-billion net income this year, which would equate to a rounded up 10% growth from the P45.1 billion in 2024, the lowest double-digit increase.

Meralco on Monday released its first-quarter financial earnings, with its consolidated core net income up 11% to P11.172 billion from P10.083 billion, and reported income up 9% to P10.448 billion.

Gross revenues were up 10% to P114.511 billion from P104.548 billion, with distribution utilities accounting for 60%, and power generation accounting for 31%.

Looking ahead, Pangilinan said Meralco is watching out for the potential pick-up in demand, given the heat conditions amid the summer season.

“We’ve seen some numbers in terms of potential demand for the summer months… There’s a scenario where if demand really spikes to more than a thousand megawatts in the course of the next few weeks, if it gets as hot as this, then demand goes up,” he said.

“It could be a cause of concern, so Meralco’s got to watch out for that,” he added.

Meralco constructs, operates, and maintains electric distribution systems in the cities and municipalities of Bulacan, Cavite, Metro Manila, and Rizal, as well as certain areas in the provinces of Batangas, Laguna, Pampanga, and Quezon.

The firm counts as subsidiaries and associates Vantage Energy Solutions and Management Inc. and MeridianX Inc., acting as retail electricity suppliers in Luzon and the Visayas.

President Ferdinand “Bongbong” Marcos Jr. earlier this month signed into law the measure renewing Meralco’s franchise for another 25 years.

“This reinforces our commitment to public service, to sustainable growth, to nation-building. It is as well a reminder of our public accountability,” Pangilinan said.

“As we move forward, we remain dedicated to enhancing our services, and ensuring that our stakeholders receive the best value from partnering with us for development,” he added. — BM, GMA Integrated News