AYALA-LED ACEN Corp. posted a 22.8% increase in its attributable net income for the third quarter to P1.94 billion, with its international business making up for the decline in local earnings, it said on Tuesday.
In a disclosure, the renewable energy company attributed the lower earnings for its local business to “plant availability issues and the higher cost of power.”
“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,” said Eric T. Francia, president and chief executive officer of ACEN.
ACEN said its revenues for the third quarter increased by 70.3% to P9.23 billion from the P5.42 billion recorded in the same period last year.
For the nine-month period, ACEN’s profit declined by 3.5% to P4.12 billion from P4.27 billion in the same period last year.
The renewable energy firm’s revenues for the period rose by 34% to P25.11 billion from P18.74 billion last year. It attributed the growth largely to the contributions from new operating merchant plants.
Attributable output as of September rose by 11% to 3,740 gigawatt-hours (GWh), the company said, pointing to the full nine-month contribution of new wind farms in Vietnam and solar plants in India.
Meanwhile, its cost and expenses for the nine-month period climbed by 60.4% to P23.44 billion from P14.61 billion in the same period last year.
On Monday, ACEN announced that it completed divesting its stake in subsidiary South Luzon Thermal Energy Corp. through an energy transition mechanism that allows the early retirement of the unit’s 246-megawatts coal-fired power plant.
In September, ACEN announced that it issued and listed a P10-billion maiden peso-denominated ASEAN green bonds at a fixed interest rate coupon of 6.05% due in 2027.
The bonds comply with the ASEAN green bonds standards in which proceeds are used exclusively to finance or refinance eligible green projects.
In August, ACEN, through its subsidiary in Australia, secured a 100-million Australian dollar long-term revolving loan to fund its green assets in that country as part of a goal to grow its renewables capacity.
On Tuesday, shares in the company closed 0.5% lower to end at P6.02 apiece. — Ashley Erika O. Jose