Meralco Reports PHP 45.14B Profit, Eyes PHP 50B in 2025

Manila Electric Co. (Meralco) ended 2024 with strong financial growth, setting the stage for an ambitious PHP 50 billion profit target in 2025.

Meralco Chairman Manny V. Pangilinan emphasized the company’s goal of sustained profitability and operational efficiency.

“The lowest double-digit that I could say, to be precise, would be PHP 49.6 billion. Of course, I’m encouraging the management to achieve something, at least PHP 50 billion,” Pangilinan said.

The company’s Consolidated Core Net Income (CCNI) surged 22% to PHP 45.14 billion from PHP 37.11 billion in 2023.

Meralco’s reported income grew by 21% to PHP 45.9 billion from PHP 38.02 billion the previous year.

Gross revenue increased by 6%, reaching PHP 470.36 billion from PHP 443.61 billion in 2023.

Core EBITDA climbed 16% to PHP 74.95 billion, up from PHP 64.37 billion.

Capital expenditure (CAPEX) rose 52% to PHP 44.71 billion, driven by new connections, asset renewals, and infrastructure projects, including government pole relocation efforts.

Investments in renewable energy also fueled CAPEX growth, particularly through Meralco’s subsidiary MGen Renewable Energy Inc. (MGreen).

Notable projects include the 1,200 MW MTerra Solar power plant and three additional solar farms: the 12.6 MWac Baras solar project, the 52.8 MWac Greenergy project, and the 19.8 MWac Greentech Bongabon project.

Meralco aims to expand its power generation portfolio and improve operational efficiency across its distribution utilities and non-power subsidiaries.

200-MW POWER DEAL

To address a looming power supply shortfall, Meralco has signed an Emergency Power Supply Agreement (EPSA) for 200 megawatts (MW) of baseload capacity.

The deal, which takes effect on Jan. 26, 2025, ensures stable power distribution amid increasing demand, particularly during the summer months.

The agreement follows the termination of a 2019 Power Supply Agreement (PSA) between Meralco and ACEN Corp., which created a deficit in baseload capacity.

“In the best interest of its customers, Meralco was constrained to find a contingency and consider an alternative source of supply through a negotiated procurement of an EPSA for Meralco’s 200 MW baseload supply requirement,” the Energy Regulatory Commission (ERC) stated.

Meralco received proposals from six power suppliers: Mariveles Power Generation Corp. (MPGC), Sual Power Inc. (SPI), Southwest Luzon Power Generation Corp. (SLPGC), First NatGas Power Corp. (FNPC), Therma South Inc. (TSI), and South Luzon Thermal Energy Corp. (SLTEC).

After evaluation, SPI submitted the lowest bid and secured the contract.

The EPSA runs from Jan. 26, 2025, to Jan. 25, 2026, at a contract price of PHP 5.0500 per kilowatt-hour (kWh) at the plant gate, exclusive of VAT, with an additional PHP 0.1000 per kWh for line rental.

The 200-MW contract capacity is expected to stabilize Meralco’s power supply and mitigate potential disruptions as peak demand rises.