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, improved retail electricity margins, and increased power generation availability.

• Consolidated revenues increased 6% to PHP 237.5 billion, with electric revenues comprising 97% of the total.

• Distribution utility accounted for 55% of core net income, while non-regulated businesses contributed 45%.

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

Financial highlights

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

• Core EPS increased 21% year-over-year to PHP 20.59; dividend payout at 50% of core EPS.

• Cash and cash equivalents at PHP 86.6 billion; consolidated debt at PHP 99.6 billion.

• Capital expenditures rose 41.2% to PHP 19.9 billion, focused on network improvements, distribution, solar projects, and telecom towers.

Outlook and guidance

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

• 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.