Q2 2024 Manila Electric Co Earnings Call Transcript
Key Points
- Manila Electric Co (PHS:MER) reported a 21% increase in consolidated core net income for the first half of 2024, reaching PHP23.2 billion.
- Consolidated revenues grew by 6% to PHP237.5 billion, driven by higher sales volumes in the distribution utility segment.
- The company achieved a 9% increase in distribution revenues, attributed to higher sales volumes and an approved interim average rate.
- Manila Electric Co's power generation unit delivered a total of 7,633 gigawatt hours of energy, with a high plant availability rate of 99%.
- The company has made significant progress in renewable energy projects, including the development of solar plants and securing project financing for future expansions.
- Operating expenses increased by 8% due to maintenance of distribution utility facilities and higher software maintenance costs.
- The blended margin of Pacific Light was lower, despite generating higher volumes, due to market stabilization in Singapore.
- Purchase power costs rose by 4%, consistent with the movement in pass-through revenues, impacting overall expenses.
- The company's debt balance stood at PHP99.6 billion, with a net debt to EBITDA ratio of 0.1 times.
- Regulatory challenges persist, including unresolved issues with the Energy Regulatory Commission regarding rate applications and power supply agreements.
(technical difficulty) (inaudible) Froilan Savet, FVP and Head of Networks, and (inaudible) SVP and Head of Regulatory Affairs (inaudible) (technical difficulty) finally, we would conclude the presentation, a few words from our Chairman and CEO. At this point, I would like to turn the floor now to our Chief Finance Officer, Ms. Betty Siy-Yap for the financial results.
(inaudible) consolidated core net income or CCNI in the first six months of 2024 increased by 21% to PHP23.2 billion from PHP19.2 billion in the same period last year, driven by higher sales volume of the distribution utility, higher power, higher contributions from retail, electricity business and higher plant availability of power generation in the second quarter of the year.
Consolidated reported income meanwhile rose by 26% to PHP22.4 billion from PHP17.9 billion, while core EBITDA increased by 20% from PHP33.2 billion to PHP39.8 billion this year. The gap between
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