Manila Electric (MER) Q1 2025 earnings summary

Executive summary

• Consolidated core net income rose 11% year-over-year to PHP 11.2 billion, driven by robust performance across regulated and unregulated businesses.

• Power Generation contributed 31% of core net income, Distribution Utility (DU) 60%, and RES/non-electricity 9%.

• Major milestones include PHP 150 billion project financing for MTerra Solar and a $600 million investment from Actis for a 40% stake.

• Completed acquisition of 40.2% effective interest in two major gas-fired power plants and an LNG terminal.

• Franchise renewed for another 25 years, effective May 2025.

Financial highlights

• Consolidated revenues rose 10% year-over-year to PHP 114.5 billion, mainly from higher volumes and pass-through charges.

• Core EPS increased 11% to PHP 9.912; reported EPS up 9% to PHP 9.270.

• Purchased power cost rose 13% to PHP 86.4 billion, accounting for 84% of total costs.

• Consolidated CAPEX reached PHP 25.4 billion, with PHP 18.3 billion allocated to MTerra Solar.

• Cash and cash equivalents at PHP 103.1 billion; consolidated debt at PHP 188.1 billion.

Outlook and guidance

• Maintains 4.5% DU volume growth target for 2025, expecting stronger growth in H2.

• Double-digit core profit growth (10–12%) targeted for 2025, with earnings guidance around PHP 50 billion.

• CapEx guidance for 2025: PHP 29 billion for DU, PHP 120 billion consolidated, mainly for MTerra Solar.

• MTerra Solar's first phase on track for early 2026 delivery, with 35% project completion as of March 2025.

• Power Supply Procurement Plan for 2025 includes new baseload and mid-merit contracts, with several competitive selection processes scheduled.