ACEN Corp.’s net income in the first half ballooned by 94 percent year-on-year to P4.2 billion on the back of higher revenues, which rose by 28 percent year-on-year to P20.5 billion.
It reported on Thursday that strong results from its power projects, as well as the commissioning of new projects, allowed it to achieve a net selling merchant position, amid strong prices in the Wholesale Electricity Spot Market.
“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. This has transitioned us to a net selling position in the Philippine spot market and strengthened our financial performance,” ACEN President Eric Francia said in a statement.
Attributable earnings before interest, taxes, depreciation, and amortization (EBITDA), which includes ACEN’s share of EBITDA from non-consolidated operating associates and joint ventures, rose 20 percent to P9.4 billion in the first half.
Boosted by a strong Northern Luzon wind regime and the portfolio’s swing to a net seller position, Philippine operations contributed P4.1 billion to EBITDA, a 48-percent rise year-on-year.
Meanwhile, international EBITDA grew 17 percent to P5.5 billion with stronger wind resources and the ongoing commissioning of the 521-megawatt (MW) New England Solar farm in Australia, supported by carbon credit sales in Vietnam.
Total attributable renewables output showed double-digit growth, rising 21 percent to 2,052 gigawatt hours (GWh) in the first half of 2023, without the impact of the Visayas curtailment experienced in the previous year.
Renewables generation from Philippine operations rose by 30 percent to 568 GWh, on the back of a strong wind regime, and with the commissioning of the country’s largest wind farm to date, the 160 MW Pagudpud wind farm in Ilocos Norte, as well as of the 44 MW second phase of the Arayat-Mexico solar farm in Pampanga.
ACEN’s international portfolio generated 1,483 GWh, up 17 percent from 2022, driven by strong wind resources in Vietnam, alongside improved capacity factors in Indonesia, and the ramp-up of commissioning offtake for the 521 MW first phase of New England Solar in New South Wales, Australia.
Consolidated assets rose to P242.7 billion, while long-term investments grew 19 percent to P130.7 billion as the company continued to scale up its renewables portfolio, with 2.7 GW currently under construction. Total liabilities grew by 15 percent to P95.5 billion with more borrowings to fund renewables expansion during the period. Nevertheless, the company’s leverage ratios remain strong at a gross debt-to-equity (D/E) ratio of 0.52x and net D/E of 0.29x.
“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 ACEN Chief Financial Officer Cora Dizon.
ACEN is targeting to achieve 20 GW in attributable renewables capacity by 2030. Currently, the company has a diversified portfolio of 4.3 GW in renewable energy, both operational and under construction, with 1.6 GW in the Philippines, 1.0 GW in Australia, 0.9 GW in Vietnam and Lao People’s Democratic Republic, 0.5 GW in India, and 0.3 GW across Indonesia and other markets.
“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 Back, ACEN chief strategy officer.
