ACEN expansion lifts income by 24% to P2 billion

AYALA-LED ACEN Corp. reported an attributable net income of P2.21 billion in the second quarter, up 24.2% from a year ago, boosted by its renewables expansion.

“Our growth continues to be robust midway through 2023. We’ve made considerable progress with the continued ramp-up of our projects, helping provide much-needed supply to the Philippines and across the region,” Eric T. Francia, president and chief executive officer of ACEN, told the stock exchange on Thursday.

For the April-to-June period, ACEN said its consolidated revenues surged to P11.33 billion, 32.2% higher than the P8.57 billion in the same period last year.

“We continue to expand our funding sources and optimize ACEN’s capital structure, while keeping track of our leverage ratios, as we aggressively pursue new investments in line with our growth aspirations,” said Maria Corazon G. Dizon, chief finance officer and compliance officer.

In the first semester, ACEN’s net income attributable to the parent company reached P4.23 billion, up by 94% compared with P2.18 billion in the corresponding period in 2022.

The energy company said its profit rise signifies recovery from the headwinds it experienced in 2022.

“The company’s strong performance was accompanied by a rise in overhead, as ACEN ramped up manpower in support of the acceleration of its renewables expansion,” it said.

Consolidated revenues for the January to June period also expanded posting a 28.2% increase to P20.47 billion from P15.97 billion a year ago

The energy company of the Ayala group attributed its revenue rise to the increase in net generation, which it said was driven by a “stronger wind regime throughout the period and higher operating capacity with testing and commissioning of new projects.”

The boost in net generation allowed the company to reach a net selling merchant position along with strong prices at the Wholesale Electricity Spot Market (WESM), ACEN said.

For the January-to-June period, ACEN’s attributable EBITDA or earnings before interest, taxes, depreciation, and amortization from nonconsolidated operating associates and joint ventures went up by 20% to P9.4 billion.

ACEN said its Philippine operations contributed P4.1 billion to EBITDA, 48% higher than a year ago, while its international EBITDA expanded 17% to P5.5 billion due to “stronger wind resources” with the ongoing commissioning of its 521-megawatt direct current (MWdc) New England solar farm project in Australia.

ACEN said its combined attributable renewable energy output posted double-digit growth to 2,052 gigawatt-hours (GWh) in the first six months of the year.

In the Philippines, ACEN’s renewable energy generation registered a 30% increase to 568 GWh, which it attributed to the commissioning of its 160-megawatt Pagudpud wind farm in Ilocos Norte and the 44-MWdc second phase of its Arayat-Mexico solar farm in Pampanga.

Meanwhile, the company’s international portfolio generated 1,483 GWh, up by 17% from a year ago, fueled by robust wind resources in Vietnam and improved operations in Indonesia.

ACEN has around 4,200 MW of attributable capacity spread across the Philippines, Vietnam, Indonesia, India, and Australia. The energy company is targeting to expand its renewable energy portfolio to 20 GW by 2030.

“We continue to be at the forefront of the global energy transition as we actively establish new partnerships and grow existing relationships in order to deliver reliable and sustainable power to the markets we serve. We are confident that these opportunities will allow us to move ever closer to our ACEN 2030 aspirations and beyond,” said Jonathan P. Back, the company’s chief strategy officer.

At the local bourse on Thursday, shares in the company gained 29 centavos or 5.79% to close at P5.30 apiece. — Ashley Erika O. Jose