ACEN Corp., the listed energy platform of the Ayala Group, said Tuesday net income attributable to the equity holders of the parent company rose 23 percent in the third quarter to P1.9 billion from P1.579 billion in the same period last year.
This brought net income attributable to equity holders of the parent company to P4.1 billion in the first nine months, down by 4 percent from P4.27 billion a year ago.
ACEN said the strong international business growth offset the decline in Philippine earnings.
Consolidated revenues in the first nine months increased 34 percent to P25.2 billion, driven by contributions from new operating Philippine merchant plants which offset the impact of thermal outages and curtailment in the Visayas earlier in the year.
ACEN said the third quarter showed the value of the diversity of its portfolio, as strong earnings from the international business offset the decline in Philippine earnings primarily due to plant availability issues and the higher cost of power.
Attributable output from January to September grew 11 percent to 3,740 gigawatt-hours in 2022, led by the full nine-month contribution of new Vietnam wind farms and India solar plants.
“The Philippine market continues to be challenging given the tight power supply situation and high fossil fuel prices. However, we expect a significant increase in our renewables operating capacity by the middle of 2023, which will not only help address the country’s energy needs, but also significantly improve the company’s financial performance,” ACEN president and chief executive Eric Francia said.
ACEN recently announced the divestment from South Luzon Thermal Energy Corp. and the completion of the world’s first market-based Energy Transition Mechanism transaction that would enable the early retirement of the 246-megawatt coal plant in Batangas province by 2040 and its transition to a cleaner technology.
The coal plant’s operating life will be reduced by up to 25 years and will help avoid up to 50 million metric tons of carbon emissions.
ACEN received P7.2 billion from the ETM for reinvestment into the company’s renewable energy projects.
ACEN issued in September its maiden Peso ASEAN Green Bonds worth P10 billion at a fixed interest rate coupon of 6.0526 percent with a five-year tenor, or due in 2027.
The bonds were 8.6-timesoversubscribed and received PRS Aaa rating, the highest possible from Philippine Rating Services Corp.
“We continue to grow our balance sheet as we strive to achieve 20 GW renewables capacity by 2030. In the third quarter alone, through the ETM, as well as our peso Green bonds and Australian dollar Green loans, we’ve seen strong support from financial investors and several local and international banks to fund our renewables expansion, as we target to achieve net zero carbon emissions by 2050,” said ACEN chief finance officer and treasurer Cora Dizon.
ACEN is the listed energy platform of the Ayala Group. The company has about 3,700 MW of attributable capacity in the Philippines, Vietnam, Indonesia, India and Australia, with a renewable share of 93 percent which is among the highest in the region.
ACEN aspires to be the largest listed renewables platform in Southeast Asia, with a goal of reaching 20 GW in renewables capacity by 2030.