Lower costs and new farms drive ACEN’s income increase by 61.5%

ACEN Corp., the renewable energy arm of the Ayala group, reported a 61.5% increase in its attributable net profit to P3.57 billion for the second quarter, driven by the operation of new solar and wind farms and a significant reduction in costs.

Revenues fell 16.6% from P11.33 billion to P9.45 billion; however, costs and expenses fell 34.8% from P9.16 billion to P5.97 billion, ACEN said in its regulatory filing on Thursday.

For the six-month period, ACEN’s attributable net income rose 48.7% to P6.29 billion from P4.23 billion a year ago.

This was attributed to 42% growth in attributable renewable energy generation, as well as an improved net sales position on the Wholesale Electricity Spot Market (WESM), the electricity trading floor.

“We have strong momentum driven by robust growth in operating results and steady progress on our project pipeline,” said ACEN President and Chief Executive Officer Eric T. Francia.

“We have secured several new projects that we expect will increase our capacity over the next six to twelve months. We remain on track with our goal of reaching 20 GW (gigawatt) renewable energy capacity by 2030.”

At the end of June, the company’s attributable renewable energy capacity stood at 4.8 GW, of which 69% is already fully or partially operational.

ACEN’s total attributable renewable energy production increased by 42% to 2,908 gigawatt hours (GWh).

Broken down, renewable power plants in the Philippines generated 1,015 GWh in the first half, up 77% from last year.

ACEN operationalized solar and wind farms in the first half, namely the 385 megawatt (MW) phases 1 and 2 San Marcelino Solar in Zambales; the 160 MW Pagudpud Wind and 70 MW Capa Wind in Ilocos Norte; the 133 MW Cagayan North Solar in Cagayan, and the second phase of the 116 MW Arayat-Mexico Solar joint venture in Pampanga.

In turn, the company’s net seller position in the WESM increased by 80% to 606 GWh, supported by the mentioned operationalized plants.

Attributable renewable energy production from ACEN’s international assets increased by 28%, generating 1,893 GWh.

This year saw the commissioning of large-scale projects including the 522 MW first phase of New England Solar in Australia, the 420 MW Masaya Solar in India and the 60 GW Lac Hoa and Hoa Dong Wind in Vietnam.

The 287 MW first phase of the SUPER solar platform in Vietnam, which was acquired last year, was also added to ACEN’s generation portfolio.

Currently, ACEN has approximately 4.8 GW of attributable renewable energy capacity in operation and under construction, has signed agreements and won competitive tenders worth more than one GW.

Meanwhile, its listed subsidiary Enex Energy Corp. narrowed its net loss to P10.83 million for the second quarter, compared to nearly P15 million last year.

Expenses for the quarter were relatively flat during the period, which stood at P4.38 million compared to P4.37 million previously, the oil and gas exploration company told the local exchange in a separate regulatory filing.

For the six months ended June, second-quarter net loss narrowed to P23.04 million from P29 million a year earlier. – Shelden Joy Talavera