Manila Electric (MER) Q3 2024 earnings summary

Executive summary

• Achieved record consolidated core net income (CCNI) of PHP 35.1 billion for the nine months ended September 30, 2024, up 17% year-over-year, driven by strong performance across all business segments and higher sales volumes.

• S&P upgraded the long-term credit rating to BBB with a stable outlook, citing strong financial position and steady cash flows.

• Distribution utility sales volume reached a record 40,872 GWh, with residential and commercial segments growing 10% and 8%, respectively.

• Consolidated revenues grew 6% to PHP 355.4 billion, mainly due to a 7% increase in energy sales volume.

Financial highlights

• Reported net income rose 19% to PHP 33.8 billion; core EBITDA increased 16% to PHP 59 billion.

• Core EPS up 17% to PHP 31.137; reported EPS up 19% to PHP 29.948.

• Cost and expenses increased 4% to PHP 319 billion, with purchased power accounting for 82%.

• Dividends from unconsolidated investees totaled PHP 8.6 billion, mainly from PacificLight and San Buenaventura.

• Net income before tax grew 22% to PHP 42.7 billion; provision for income tax increased 34% to PHP 8.0 billion.

Outlook and guidance

• Full-year net income guidance raised to above PHP 43 billion, with all business segments expected to deliver strong results.

• Energy sales for 2024 projected to grow 6% year-over-year, reaching 53,350+ GWh.

• Franchise renewal bill passed second reading in the House, pending Senate approval.

• New power supply agreements secured for 600 MW baseload and 400 MW mid-merit requirements, effective September 2025.

• Ongoing expansion in renewable energy, including major solar projects and strategic partnerships.