Q3 2024 Manila Electric Co Earnings Call Transcript
Key Points
- Manila Electric Co (PHS:MER) reported the highest third-quarter results with a 4% increase in sales volume and a 17% year-on-year increase in CCNI, reaching PHP35.1 billion.
- The company's distribution utility business saw a 7% increase in volume, with residential and commercial volumes increasing by 10% and 8%, respectively.
- S&P upgraded Manila Electric Co's long-term credit rating to BBB, citing strong financial performance and stable cash flows.
- The company completed significant capital expenditure projects, including the installation of a new power transformer and the commissioning of new substations, enhancing service reliability.
- Manila Electric Co maintained its inclusion in the FTSE4Good Index for the fourth consecutive year, reflecting strong ESG performance.
- The system loss increased to 6.04%, driven by a higher share of high-loss residential customers, although it remains below the regulatory cap.
- Costs and expenses rose by 4% to PHP319 billion, with purchased power costs accounting for 82% of total expenses.
- The company's unregulated business contribution remained flat compared to the previous year, indicating limited growth in this segment.
- PacificLight's contribution decreased due to lower energy delivery and planned outages, impacting overall power generation results.
- The telco tower business is expected to take about four years to deliver positive numbers, indicating a long-term horizon for profitability.
Good afternoon, everyone. Welcome our investors and analysts on site here in the 14th floor of Lopez Building inside the Meralco Operating Center, as well as those attending online via MS Teams. I am P.J. Ramos from the Meralco Investor Relations Team and I will be moderating today's briefing.
Before we proceed any further, please be advised that the conference call is recorded. Kindly follow the ground rules that were sent to you beforehand. We will present the financial and operating results of Meralco for the quarter ended September 30, 2024. You may download a copy of the presentation from our website, www.meralco.com.ph, under the Investor Relations section.
We have members of Meralco's management team on hand for this briefing to be led by our EVP and Chief Operating Officer, Mr. Ronnie Aperocho; SVP and Chief Revenue Officer, Mr. Ferdinand Geluz; SVP and Chief Finance Officer, Ms. Betty Siy-Yap; FVP and Head of Networks, Mr. Froilan Savet
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