The Manila Electric Company (Meralco) reported higher earnings from January to September this year, amid looser quarantine rules and better performance from its units.
In a disclosure to the local stock exchange on Monday, Meralco declared a consolidated net core income of ₱18.1 billion — a 15% growth from the same nine-month period in 2020.
It said this was “driven by the combined effect of the 6% increase in energy distributed with the easing of quarantine restrictions, and increased contribution from its different business units and subsidiaries.”
Consolidated total revenues climbed by 11% to ₱231.7 billion during the period, primarily driven by electricity revenues, according to Meralco. Non-electricity revenues also rose by 9% to ₱6.3 billion.
The power distributor also reported consolidated energy sales volumes of 34,398 gigawatt hours (GWh), higher than the 32,539 GWh logged in the first three quarters of 2020.
“Commercial and industrial sectors recovered in the nine-month period following more flexible community quarantine restrictions, and sustained growth in the residential sector. Energy sales volumes from Meralco and Clark Electric were 6% and 10% higher, respectively,” the statement read.
Meralco reported an increase in sales across its residential, commercial, and industrial customer sectors.
Meanwhile, purchased power costs climbed to ₱163.6 billion from ₱156.1 billion last year. The listed firm attributed this to higher Wholesale Electricity Spot Market costs and Malampaya natural gas prices along with the absence of force majeure claims this 2021.
Meralco said it has spent ₱18.5 billion in capital expenditures so far this year, nearly 60% of which went to its networks.
“About 90% of the Networks CAPEX was spent on new connections, asset renewals and load growth projects; while the balance was used to support other projects including the government’s Build, Build, Build program and the Meralco Electrification Program,” it explained.
It likewise reported operating expenses of ₱22.7 billion for the period, having allocated this to “increased business activities and accelerated maintenance work on distribution facilities” in Meralco and Clark Electric franchise areas.
Also included were higher expenses of Radius Telecoms and CIS Bayad Center given their “investment Gigabit Passive Optical Network and digital businesses, respectively,” noted Meralco.
Meralco shares closed at ₱293.40 apiece on Monday, down 0.41% from last Friday’s close.