ACEN net income surges on new operating capacity

AYALA-LED ACEN Corp. registered an attributable net income of P2.33 billion for the third quarter, 20.5% higher than the level a year ago, as its projects brought in more operating capacity.

In a disclosure to the stock exchange on Thursday, the listed energy company said revenues from selling electricity went down by 12% to P8.12 billion from P9.23 billion last year.

“Third quarter operating earnings dipped versus the previous quarter with scheduled plant maintenance and expected seasonally low wind and Wholesale Electricity Spot Market prices with the onset of the rainy season, but ACEN maintained its net merchant selling position with the continued addition of new operating capacity,” it said.

For the July-September period, ACEN’s cost of sale for electricity went down by 10.1% to P7.92 billion from P8.81 billion previously.

“The company continues its healthy growth trajectory, notwithstanding delays in the major renewable projects. We hope to begin commercial operations of around 700 MW (megawatts) of solar and wind projects in the Philippines before the summer of 2024,” ACEN President and Chief Executive Officer Eric T. Francia said in a statement.

The company’s renewable energy generation from Philippine operations climbed by 29% to 769 gigawatt-hours (GWh) with the continued commissioning of the 44-MW second phase of the Arayat-Mexico solar farm and the 160-MW Pagudpud wind farm.

“Despite the onset of the low wind season and seasonally low solar resources, ACEN maintained a net merchant selling position during the third quarter,” the company said.

During the third quarter, ACEN added new capacities to its international portfolio with the 420-MW Masaya solar farm in Madhya Pradesh, India, and the 287-MW first phase of its 49% stake in Solar NT in Vietnam, which is a joint venture with Thailand-based Super Energy Corp.

In the nine months to September, ACEN’s net income attributable to the parent company reached P6.56 billion, up 59% from P4.12 billion in the same period last year.

The company attributed the increase to the gains from the sale of stakes in the Salak and Darajat geothermal plants in Indonesia.

ACEN’s attributable earnings before interest, taxes, depreciation, and amortization inched up by 21% to P14.1 billion.

Nine-month attributable renewables output rose by 27% to 3,174 GWh “as the company continued to add new operating capacity in its global portfolio.”

In September, ACEN said it had raised P25 billion in two series of perpetual preferred shares listed on the main board of the Philippine Stock Exchange.

ACEN said that this was driven by “the strong demand from both institutional and retail investors, allowing ACEN to fully exercise its oversubscription option.”

“Our strategy to diversify our funding sources, with the issuance of the first peso-denominated fixed-for-life preferred shares, further strengthened the company’s financial position in support of its renewables capacity expansion,” ACEN Chief Financial Officer Corazon G. Dizon said.

To date, 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 gigawatts by 2030. 

At the local bourse on Thursday, shares in the company went down by 15 centavos or 2.83% to P5.15 apiece. — Sheldeen Joy Talavera