Meralco’s net profit jumps as energy sales rebound

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MANILA Electric Co. (Meralco) posted a 9.5% increase in its basic net profit in the fourth quarter of last year to 6.55 billion pesos as the volume of energy sales jumped, a said the country’s largest electricity seller on Monday.

At a press conference, Meralco Chief Financial Officer Betty C. Siy-Yap said the quarterly sales improvement was “due to increased mobility and the easing of restrictions.”

For the year 2021, the electricity utility reported a consolidated basic net income of 24.61 billion pesos, 13.4% more than the previous year, as the volume of energy sales fell at levels close to pre-pandemic levels. He also cited the contribution of its power generation business.

Reported income increased 44% to 23.5 billion pesos in 2021 from 16.32 billion pesos previously, excluding one-off charges from impairment recorded in 2020 on its investment in PacificLight Power Pte, based in Singapore. ltd.

In a statement released after the briefing, Meralco Chairman Manuel V. Pangilinan said, “Our strong operational and financial performance in 2021 reflects Meralco’s continued efforts to invest in customer-centric innovations and our journey of innovation. digital transformation to provide quality and reliable service to our customers. more than seven million customers, amid an ongoing pandemic.

Meralco’s consolidated revenue jumped 16% to 318.5 billion pesos last year, from 275.3 billion pesos in 2020, as electricity sales rose 15% to 309.3 billion. pesos against 267.9 billion pesos.

“We would also like to highlight that this includes revenues from Global Business Power Corp. (GBP), which began consolidation in April 2021,” Ms Siy-Yap said during the briefing.

The Meralco Meralco PowerGen Corp. unit took full ownership of GBP in January 2021.

The power giant said energy sales volume rose 6% to 46,073 gigawatt hours (GWh), which it attributed to “sustained residential consumption, increased commercial volumes amid more relaxed quarantine restrictions and a strong industrial rebound in franchise areas. .”

He said energy sales volumes from Meralco and its unit Clark Electric Distribution Corp. increased by 6% and 10%, respectively.

In terms of sales mix, residential sales accounted for 37%, while commercial and industrial sales accounted for 33% and 30%, respectively, Meralco said.

The continued work-from-home and remote learning setup drove residential sales volume growth of 3% to 16,913 GWh from 16,488 GWh year-over-year.

The easing of community quarantine restrictions, especially in the months close to December, and the intensification of government vaccinations pushed commercial sales volume up 3% to 15,234 GWh from 14,766 GWh.

Meanwhile, Meralco said industrial sales volumes returned to near pre-pandemic levels, recording the biggest increase of 13% to 13,782 GWh from 12,176 GWh, supported by the strong performance of the semiconductor industry.

The company’s customer base also grew by 4% to 7.4 million at the end of 2021, from 7.1 million in 2020, as new customers were boosted for mainstream services and project-covered applications. hit an all-time high, surpassing 2019 and 2020 levels, he said. .

SUSTAINABILITY COMMITMENT
Meralco said it is considering adopting next-generation technologies, including battery energy storage system (BESS), offshore wind and nuclear, especially modular nuclear reactors, to accelerate efforts to decarbonization.

The company said it would explore more advanced technologies to incorporate into its day-to-day operations, such as green hydrogen. Meralco is committed to being coal-free by 2050.

“We are also reaffirming our commitment to embed sustainability deeply into our strategy and operations, while embarking on a just, orderly and affordable transition to clean and environmentally friendly energy. Our long-term sustainability strategy outlines this significant decarbonization plan from today through 2050,” Mr. Pangilinan said.

Meralco shares on the local stock exchange jumped 5.00 PPP or 1.38% to 368.00 PPP each on Monday.

Meralco’s majority shareholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of MediaQuest Holdings, Inc., a subsidiary of PLDT Beneficial Trust Fund, which holds interests in Business world through the Philippine Star Group, which he controls. — Marielle C. Lucenio

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