MANILA — The Manila Electric Company (Meralco) reported a 14-percent increase in consolidated core net income (CCNI) to PHP40 billion, driven primarily by its distribution utility (DU) business.

In a disclosure to the Philippine Stock Exchange (PSE), Meralco said its DU business accounted for 55 percent of total income as of end-September, or PHP21.9 billion. Power generation contributed 37 percent, amounting to PHP14.7 billion, while retail electricity supply (RES) and non-electric businesses made up 8 percent, or PHP3.4 billion.

While the DU business remains the largest contributor to income, the power generation segment posted significant improvement, with its contribution to CCNI rising 63 percent.

“This was fueled by earnings from LNG (liquefied natural gas) in (a) Chromite Gas Holdings, Inc. (Chromite Gas) beginning February this year; and (b) PacificLight Power Pte. Ltd. (PacificLight), and strong revenue gains from participation in the Reserve Market,” Meralco said.

Chromite Gas is a joint venture between Meralco PowerGen Corporation (MGEN) and AboitizPower’s Therma NatGas Power, Inc., which acquired significant shares in gas power plants and an LNG import terminal in Batangas. PacificLight, an electricity retailer in Singapore, is partly owned by MGEN and shareholders under the Hong Kong-based First Pacific Group.

Meralco also reported a 0.4-percent drop in energy sales for its DU business, citing extended periods of inclement weather that affected demand in residential and commercial segments.

Meralco chair Manuel Pangilinan said the company remains optimistic about reaching its full-year core profit guidance of PHP50 billion, citing the strong performance of its power generation business and steady growth in its distribution operations.

Pangilinan attributed this optimism to the Energy Regulatory Commission’s (ERC) issuance of the Rationalized Rules for Setting Distribution Wheeling Rates (RRDWR) for private DUs, which Meralco had not received in the past 10 years, and to the timely implementation of ERC’s First Regulatory Period (1RP) for the company, covering July 1, 2026 to June 30, 2030.

He also highlighted the importance of the passage of the Philippine Nuclear Energy Safety Act, noting it “reflects the country’s strong commitment to advance nuclear energy development for long-term energy security and sustainability.” (PNA)