AC Energy unit turns profitable as power sales jump

THE Philippine unit of Ayala-led AC Energy, Inc. saw its attributable income in the first quarter went up to P306.94 million, compared to a loss of P145.27 million in the same quarter in 2019, on the back of after-tax income growth with a spike in electricity sales revenue.

In a disclosure to the stock exchange, Wednesday, AC Energy Philippines, Inc. (ACEPH) said its net income for the January-March period rose to P311.56 million, compared with P146.23 million net loss recorded in the same period a year ago.

This came as its revenues from electricity sales also increased to P4.21 billion, up 24.3% from P3.38 billion in the same quarter last year, attributed to the higher energy sales of the power supply business of its parent after it secured a new supply contract with Manila Electric Co., as well as the additional revenue from a customer’s pre-termination fees.

ACEPH reported no dividend income nor rental income in the quarter.

Further, the company noted that its cost of electricity sales showed flat growth of P3.37 billion from P3.36 million in the same quarter a year ago, along with the lower cost of purchases at the Wholesale Electricity Spot Market.

It also posted a decrease of P29.1 million in equity in net income of associates and joint ventures from P76.96 million earlier recorded, as it turned South Luzon Thermal Energy Corp. to one of its units from a joint venture project with Axia Power Holdings Philippines Corp. in November.

Yet, this was offset by its investment in North Luzon Renewable in February this year.

In April, shareholders approved to rename the company to AC Energy Corp. and to also raise its authorized capital stock to P48.4 billion from P24.4 billion, after it decided to buy Presage Corp., the international renewables unit of its parent which operates in Indonesia, Vietnam and other Asia-Pacific countries.

On Wednesday, shares in ACEPH inched up 0.44% to close at P2.27 apiece. — Adam J. Ang