INVESTORS snapped up ACEN Corp. last week after the Ayala-led renewable company partnered with an Indonesian firm to develop over 300 megawatts (MW) of wind energy projects in that country.
Data from the Philippine Stock Exchange showed ACEN was one of the most actively traded stocks in terms of value turnover, with P556.73 million worth of 102.02 million shares exchanging hands from Aug. 27 to 30.
Local financial markets were closed on Aug. 26 due to National Heroes Day.
The Ayala-led firm’s shares closed at P5.44 apiece on Friday, 4.6% higher than its Aug. 22 close of P5.20. Year to date, the stock has increased by 24.2%.
Arielle Anne D. Santos, equity analyst at Regina Capital Development Corp., said that the public viewed the partnership of ACEN with PT Barito positively.
“Such move would enhance ACEN’s regional expansion, leading to upward pressure on the stock,” Ms. Santos said in a Viber message.
Last week, ACEN entered into a partnership with renewable energy company PT Barito Renewables Energy Tbk to advance the development of wind projects with a capacity of 320 MW in Indonesia.
ACEN said in a statement that the collaboration, which will be executed by its subsidiary ACEN Indonesia Investment Holding Pte. Ltd. and Barito Renewables’ subsidiary PT Barito Wind Energy, brings together the two firms to drive the nation’s shift towards a sustainable energy future.
The partnership builds on the acquisition of three “strategically located” late-stage wind development assets in South Sulawesi, Lombok, and Sukabumi that was announced in January.
The said assets offer a potential capacity of 320 MW of wind energy, supplemented by battery energy storage solutions, which are poised to enhance grid efficiency and stability in the region.
The firm holds about 4.8 gigawatts (GW) of attributable renewable capacity in operation and under construction, and has signed agreements and won competitive tenders worth over one GW.
“ACEN has also been in the spotlight due to its ongoing aggressive expansion in the renewable sector, including new project announcements and updates on existing projects. Market sentiment has been buoyed by the company’s commitment to scaling its renewable portfolio, which is seen as aligning well with global energy transition trends,” Ms. Santos said.
ACEN is looking to expand its renewables capacity to 20 GW by 2030.
Revenue from electricity sales of ACEN went down 6.6% in the first semester to P18.95 billion from P20.29 billion in the six months to June last year.
Its attributable net income, meanwhile, rose by 48.7% to P6.29 billion in the first half.
Ms. Santos said that ACEN is expected to post moderate earnings growth driven by new project completions and favorable market conditions.
“However, full-year earnings will likely be impacted by ongoing capital expenditures and the scaling of new projects. The company’s focus on long-term growth may dampen short-term profitability, but it sets the stage for substantial gains in the coming years,” she said.
“Support is at P5.10 while resistance is at P5.65. In near term, ACEN would likely just be confined within the range,” Ms. Santos said. — C.W.E. Laureta
