Meralco earnings steady at P11.4B despite headwinds

Manila Electric Co. (Meralco) posted a modest increase in earnings in the first quarter as it navigated through softer demand and global energy pressures.

The country’s largest power distributor reported a 2 percent rise in consolidated core net income (CCNI) to P11.4 billion, up from P11.2 billion a year earlier. 

Reported net income climbed 4 percent to P10.8 billion, while core earnings per share grew 2 percent to P10.137. Reported earnings per share also rose 4 percent to P9.611.

At a media briefing on Monday, Meralco chief financial officer Betty C. Siy-Yap said the distribution utility remained the largest earnings contributor, accounting for 46 percent or P5.3 billion. 

Power generation followed at 45 percent or P5.1 billion, while retail electricity supply and other businesses contributed 9 percent or P978.4 million.

Despite external headwinds, the company sustained stable operations and continued expanding its customer base. According to Executive Vice President and Chief Operating Officer Ronnie L. Aperocho, Meralco maintained service reliability and overall performance during the period.

“The first quarter of 2026 began on a challenging note. Cooler-than-usual temperatures driven by weak La Niña conditions softened electricity demand across our franchise. At the same time, heightened geopolitical tensions in the Middle East increased volatility in global energy markets, placing upward pressure on fuel costs and power rates,” Aperocho said.

“These developments encouraged greater energy conservation and accelerated interest in rooftop solar adoption,” he added.

Reflecting these pressures, Meralco’s average retail rate rose 12 percent to P12.39 per kilowatt-hour, driven mainly by higher generation and transmission charges. Purchased power costs increased 7 percent to P92.7 billion.

Operating expenses edged up 1 percent to P10.4 billion, while capital expenditures reached P19.5 billion, largely allocated to solar power plants and battery storage projects.

Energy sales from the distribution business declined 2 percent to 12,273 gigawatt-hours (GWh), as cooler weather and increased rooftop solar adoption weighed on demand. 

The residential segment dropped 3 percent, while commercial and industrial segments both slipped 1 percent, although sectors such as semiconductors and cement remained resilient.

Customer count grew to 8.3 million, with net metering customers surging 36 percent to more than 20,000.

Meanwhile, the power generation unit emerged as a key growth driver, posting a 51 percent increase in contribution to CCNI, supported by strong plant performance and new LNG assets. 

Total energy output rose 25 percent to 6,626 GWh, while renewable energy generation expanded 34 percent on the back of new solar projects.