Manila Electric Co. (Meralco) recorded a 15-percent increase in its core net income in the first six months of the year to P13.09 billion compared with P11.4 billion in the same period in 2021.
Revenues jumped 34 percent to P199.6 billion from P149.1 billion on increased contribution of energy sales and earnings from the power generation business.
The company’s consolidated energy sales in the first half of the year rose 6 percent to 23,968 gigawatt hours (GWh) from the previous year’s 22,663 GWh.
Sales were fueled by the easing of pandemic related restrictions, the reopening of the economy as well as activities related to the summer season and the national elections.
Residential sales which represented 35 percent of the total energy sales volume went up 2 percent due to sustained energization of new customers as local government units resumed full operations and customer applicants had less mobility restrictions to process requirements.
The company noted household demand was tempered by return-to-onsite work and higher vaccination levels that improved public confidence to travel. Customers have also become more conscious of their rising expenses due to increasing prices of commodities.
Meralco said industrial sales with a share of 30 percent increased by 4 percent despite the logistical concerns from shortage of raw materials and high production costs as most manufacturers are catching up from lost production during the height of the pandemic.
Main customers include the semiconductor industry; food and beverage; and plastics.
The commercial sector with a share of 35 percent in terms of power sales recorded an 11-percent increase. Meralco said retail, restaurants, schools and hotels showed massive improvements as the government allowed establishments to operate at practically full capacity and social gatherings like rallies and concerts to resume.
Meralco’s customer count for the period reached 7.5 million, a 3- percent increase against last year’s 7.3 million with peak demand hitting 8,111 megawatts (MW), up by 4 percent from the previous 7,808 MW.
Ray Espinosa, Meralco president and chief executive officer, said the company surpassed pre-pandemic sales performance in the first half of the year.
But he said Meralco remains cautious with the effects of increased fuel prices on power rates.
“To this end, Meralco relentlessly looks for ways to cushion the impact of external volatilities on our operations. We will move ahead with the execution of sourcing strategies that include our planned competitive selection process, consistent with our power supply procurement plan, in a timely manner to ensure availability of cost-competitive power for our customers in the long-term,” Espinosa added.
