, Philippines
Photo from Envato

Meralco to sustain strong financial performance amidst heavy investments

The company is projected to maintain a ratio of FFO to debt of up to 45% over the next two years.

Manila Electric Co. (Meralco) in the Philippines is forecasted to maintain strong financial ratios despite heavy investments in its power generation business, said S&P Global Ratings.

The company is projected to sustain a ratio of funds from operations (FFO) to debt of up to 45% over the next two years, exceeding the previous upside trigger of 30%.

“Support will come from improving profitability in power generation and steady cash flow from distribution,” the report said.

Moreover, Meralco’s reported EBITDA is expected to increase to up to $1.2b (PHP68b) in 2024-2025.

Its improvement in power generation earnings over the next two years is attributed to the favourable power purchase agreement (PPA) contract terms for Global Business Power Corp. (GBPC) and additional earnings from the local contingency reserve market.

“Reflecting this, we raised our long-term issuer credit rating on Meralco to 'BBB' from 'BBB-',” the report added.

PHP1 = $0.018

Follow the link for more news on

Join Asian Power community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!