AC Energy’s income slips 28% despite growth in power sales

AYALA-LED AC Energy Corp. reported an attributable net income of P1.42 billion in the second quarter, down by 28% from P1.97 billion year on year, despite higher revenues from its power business.

In its quarterly financial report filed with the local bourse, Ayala Corp.’s listed energy platform said electricity sales in the three months ending June hit P7.63 billion, higher by 43% than the P5.36 billion recorded in 2020. Power sales accounted for 99% of its overall revenues in the second quarter.

However, cost and expenses involved in AC Energy’s sale of electricity reached P5.95 billion in the same period, twice the amount registered in the second quarter last year at P2.91 billion.

Meanwhile, the company announced a second-quarter net income of P2.18 billion, lower by 18% than the amount registered in 2020.

In a press release on Thursday, AC Energy said that consolidated net income for the first half of 2021 climbed by 5% to P2.7 billion.

“The integration of international business into ACEN (AC Energy’s stock symbol) further strengthens the company’s balance sheet to support our diversified growth plans in the Philippine and offshore markets,” said AC Energy Chief Finance Officer Maria Corazon G. Dizon.

With the infusion of international assets, renewables now comprise 80% of the firm’s capacity.

AC Energy added that its attributable capacity in the first semester rose by 56% to 2,589 megawatts (MW) with the construction of new projects in the country, and in Vietnam, India, and Australia.

“We’re very pleased with the significant momentum in our renewables expansion both in the Philippines and around the region,” AC Energy President and Chief Executive Officer Eric T. Francia said.

In another disclosure, the company said its wholly owned unit AC Renewables International Pte. Ltd. (ACRI) secured management approval to enter into a joint venture with solar photovoltaic developer NEFIN Holding Ltd. to develop and operate rooftop solar projects across Asia.

The joint venture, which will be in the form of a holdings firm, will own 21 MW of operating assets and have “robust” project pipeline.

ACRI will initially invest $10 million of fresh funds for the development of near-term projects in the coming years. The Ayala unit also plans to finance the development of carbon neutrality pipeline.

In separate regulatory filing, AC Energy said that it is reallocating a portion of the proceeds of its stock rights offer and follow-on offer to finance renewable energy projects based in Pampanga, and Zambales, respectively.

It said P900 million from the rights offer will partially finance its investment in Greencore 3 Power Solutions, Inc. for a 75-MWdc (of direct current) plant in Arayat and Mexico, Pampanga.

Of the follow-on offering proceeds, P6.17 billion will partially finance its investment in Santa Cruz Solar Energy, Inc. for a 250-MWdc plant in San Marcelino, Zambales.

AC Energy targets to be largest listed renewables platform in Southeast Asia, as it hopes to reach 5,000 MW of renewables capacity by 2025.

The firm currently has an attributable capacity of around 1,200 MW in the country.

On Thursday, AC Energy shares improved by 3.07% or 26 centavos to finish at P8.74 apiece at the stock exchange. — Angelica Y. Yang

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