Manila Electric ((MAEOY)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Meralco’s recent earnings call painted a picture of robust financial health, underscored by significant growth in power generation and enhanced operational reliability. Despite facing challenges such as a minor dip in energy sales and regulatory adjustments, the company’s commitment to sustainability and safety was positively highlighted.
Strong Financial Performance
Meralco reported a remarkable 14% increase in consolidated core net income (CCNI), reaching PHP 40 billion for the first nine months of 2025. The power generation segment was a major contributor, growing by 63% and adding PHP 14.7 billion to the CCNI, showcasing the company’s strong financial footing.
Power Generation Success
The LNG business was a standout performer, contributing PHP 10.9 billion with significant energy outputs from Chromite Gas and PacificLight. MGen’s renewable energy segment also thrived, delivering 557-gigawatt hours, a 15% increase driven by new solar plant developments.
Operational Reliability
Meralco achieved a 0.26 percentage point improvement in system loss, with notable enhancements in SAIFI and SAIDI metrics, indicating fewer and shorter power interruptions, thus improving service reliability for consumers.
Recognition in Sustainability
The company’s sustainability efforts were recognized as Meralco was included in the FTSE4Good Index for the fifth consecutive year. Additionally, it improved its Bloomberg Gender Equality score from 4.1 to 4.6, reflecting its commitment to sustainable and equitable business practices.
MGen’s Growth and Safety
MGen reported a significant achievement of over 65 million safe man-hours and a 75% increase in total energy delivered compared to the previous year, underscoring its growth and commitment to safety.
Slight Decline in Energy Sales
Energy sales experienced a slight decline of 0.4% to 40,719 gigawatt hours, attributed to cooler weather conditions and high vacancies in office and condo spaces following the POGO exit.
Impact of Unfavorable Weather
The decline in energy sales was exacerbated by cooler temperatures and disruptions from typhoons, which led to increased government and class suspensions, affecting overall energy consumption.
Distribution Revenue Decrease
Meralco faced a decrease in distribution revenue due to regulatory reset fee adjustments that began in February 2025, impacting the financial outcomes of this segment.
Challenges with Indigenous Gas Prioritization
The company faces uncertainty due to the Department of Energy’s circular prioritizing indigenous natural gas over imported LNG, which may affect future procurement strategies.
Forward-Looking Guidance
Looking ahead, Meralco anticipates continued robust growth in its power generation business, which now constitutes 37% of the CCNI. The distribution utility business remains a key contributor, accounting for 55% of the CCNI. Despite challenges, Meralco projects a strong operational performance with a 14% rise in core EBITDA to PHP 67.2 billion, supported by strategic capital expenditures in solar power plant developments and distribution network improvements.
In summary, Meralco’s earnings call reflects a strong financial performance with notable growth in power generation and operational improvements. While facing challenges such as a slight decline in energy sales and regulatory adjustments, the company remains committed to sustainability and safety, positioning itself for continued success in the coming quarters.