Manila Electric Co. (Meralco) delivered a consolidated core net income of P25.5 billion in the first half of the year, a 10 percent increase from P23.2 billion a year ago, driven by strong returns from its generation and retail electricity businesses.

At a briefing on Monday, Meralco chief financial officer Betty C. Siy-Yap said consolidated reported net income also rose 5 percent to P23.6 billion, up from P22.4 billion last year.

The power distributor said the improved earnings came on the back of steady power demand, with total energy sales reaching 27,091 gigawatt-hours (GWh)—just slightly higher than last year’s 26,954 GWh.

“Meralco delivered strong results in the first half of the year, fueled by the solid performance of our core distribution business and accelerating momentum of the generation business,” said chairman and chief executive officer Manuel V. Pangilinan.

“While energy sales volume growth has been lower than anticipated, we remain on track to meet our overall targets as power generation is expected to deliver higher-than-expected performance, offsetting the anticipated slower demand growth,” he added.

Pangilinan said Meralco is guiding for a low double-digit growth in core net income this year, reflecting confidence in its long-term strategy and earnings trajectory.

From January to June, consolidated revenues climbed 3 percent to P245.2 billion from P237 billion, while average retail rates rose 11 percent to P11.41 per kilowatt-hour (kWh) from P10.27 per kWh.

Meralco also reported capital expenditures of P47.5 billion in the first half, largely for distribution network projects such as new connections, asset renewals, and load growth initiatives.

Customer count reached 8.1 million by end-June, up 3 percent from 7.79 million in the same period last year, as energization of both regular and project-covered accounts continued.