Manila Electric (MER) Q4 2024 earnings summary

Executive summary

• Achieved record consolidated core net income (CCNI) of PHP 45.1 billion for 2024, up 22% year-over-year, surpassing profit guidance, with strong contributions from generation, RES, distribution, and non-power subsidiaries.

• S&P upgraded long-term credit rating to BBB with stable outlook.

• Unregulated businesses now account for 38% of CCNI, reflecting a strategic shift to balance regulated and unregulated operations.

• Major milestones included regulatory approvals, strategic investments, and completion of key infrastructure projects.

• Highest share price reached PHP 503.50 in October 2024.

Financial highlights

• Consolidated revenues increased 6% to PHP 470.4 billion, mainly from higher sales volume and pass-through transmission charges.

• Costs and expenses rose 4% to PHP 425.3 billion, with fuel and purchase power costs accounting for 81%.

• Capital expenditures reached PHP 44.7 billion, focused on network improvements, solar plant development, and telecom towers.

• Cash and cash equivalents stood at PHP 84.5 billion; consolidated debts at PHP 94.8 billion.

• Core EPS increased 22% to PHP 40.052 per share; total dividends declared at PHP 24.031 per share, a 60% payout ratio.

Outlook and guidance

• 2025 energy sales volume expected to reach around 56,000 GWh, a 4%-4.5% increase.

• CapEx guidance for 2025 includes PHP 54 billion for distribution utility and over PHP 100 billion for Terra Solar.

• Ongoing focus on expanding renewable energy capacity, grid modernization, and advanced metering infrastructure.

• Ongoing regulatory proceedings for tariff adjustments and CAPEX approvals.

• Franchise renewal progressing, with 25-year extension secured and awaiting presidential signature.