Manila Electric (MER) Q4 2024 earnings summary

Executive summary

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

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

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

• All-time high energy sales at 54,325 GWh, up 6.4%, driven by residential and commercial demand, especially due to El Niño.

• Customer base exceeded 8 million, with reliability and service metrics at best-ever levels.

Financial highlights

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

• Reported net income increased 21% to PHP 45.9 billion; core EPS at PHP 40.052, reported EPS at PHP 40.688, both up over 21% year-over-year.

• Costs and expenses grew 4% to PHP 425.3 billion, with 81% from fuel and purchased power.

• CAPEX surged 52% to PHP 44.7 billion, mainly for network, solar, and telecom towers.

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

Outlook and guidance

• 2025 energy sales expected to reach 56,000 GWh, a 4–4.5% increase, with growth led by commercial and data center segments.

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

• Ongoing focus on renewables, grid modernization, and regulatory compliance, with new solar projects entering commercial operations in 2025.

• Management expects substantial organic sales growth, enhanced EPS, and robust free cash flow in 2025, aligned with long-term growth strategy.

• Franchise renewal progressing, awaiting presidential signature.