Manila Electric (MER) Q1 2025 earnings summary

Executive summary

• Consolidated core net income rose 11% year-over-year to PHP 11.2 billion, and reported net income increased 9% to PHP 10.4 billion.

• Distribution utility (DU) business contributed 60% of core net income, power generation 31%, and retail/non-electricity 9%.

• Major investments in LNG and renewables, including PHP 150 billion project financing for MTerra Solar and a 40.2% stake in the country’s first integrated LNG facility.

• Franchise renewed for another 25 years, effective May 2025, under Republic Act No. 12146.

• Completed acquisition of 40.2% effective interest in two major gas-fired power plants and an LNG terminal.

Financial highlights

• Consolidated revenues rose 10% year-over-year to PHP 114.5 billion, driven by higher volumes and pass-through charges.

• Core EBITDA increased 8% to PHP 19.2 billion; electric revenues comprised 98% of total revenues.

• Purchase power cost rose 13% to PHP 86.4 billion, accounting for 84% of total costs.

• CapEx reached PHP 25.4 billion, mainly for MTerra Solar and distribution network projects.

• Cash and cash equivalents at PHP 103.1 billion; consolidated debt at PHP 188.1 billion.

Outlook and guidance

• Maintaining 4.5% DU volume growth target for 2025, expecting stronger growth in H2.

• Full-year earnings guidance at PHP 50 billion, targeting double-digit profit growth.

• CapEx guidance for 2025 at PHP 120 billion, with PHP 29 billion for DU and the rest for MTerra Solar.

• MTerra Solar's first phase on track for early 2026 delivery, with 35% project completion as of March 2025.

• Chromite Gas Holdings expected to contribute PHP 5–6 billion in income share for the year.