Manila Electric (MER) Q2 2024 earnings summary

Executive summary

• Core net income for H1 2024 rose 21% year-over-year to PHP 23.2 billion, driven by higher distribution sales, retail electricity gains, and improved power generation availability.

• Reported net income increased 26% to PHP 22.4 billion, with core EBITDA up 20% to PHP 39.8 billion.

• Consolidated revenues grew 6% to PHP 237.5 billion, mainly from higher distribution utility volumes and strong residential and commercial sales.

• Power generation delivered 7,633 GWh in H1 2024, with notable contributions from subsidiaries and renewables, despite some margin pressures.

• Interim cash dividends of PHP 10.295 per share declared, representing 50% of core EPS.

Financial highlights

• Core net income: PHP 23.2 billion (+21% YoY); reported net income: PHP 22.4 billion (+26% YoY).

• Core EBITDA: PHP 39.8 billion (+20% YoY); consolidated revenues: PHP 237.5 billion (+6% YoY).

• Electric revenues: PHP 231 billion (97% of total); non-electric revenues flat at PHP 6.5 billion.

• Core EPS: PHP 20.59 (+21% YoY); dividend payout at 50% of core EPS.

• Cash and cash equivalents: PHP 86.6 billion, up 69.8% YoY.

Outlook and guidance

• Full-year core net income guidance raised from PHP 40 billion to PHP 43 billion, reflecting stable distribution growth and sustained power generation results.

• Ongoing expansion in solar and renewable projects, with several new plants under development and commissioning.

• Management expects robust performance to continue, supported by economic growth and infrastructure investments.