The Ayala group’s power platform, AC Energy Philippines Inc., turned around with a P1.96-billion net income in the first half of 2020 from a net loss of P552 million in the same period last year.
AC Energy Philippines (ACEPH)—formerly Phinma Energy, but which is yet again changing its name to AC Energy Corp.—said in a statement the reversal in performance was mainly driven by the infusion of parent firm AC Energy Inc.’s domestic assets as well as recent acquisitions.
“We’re very pleased with the company’s turnaround and the successful integration of AC Energy’s on-shore operations,” AC Energy president and chief executive Eric Francia said.
“This allows us to make additional near-term investments in the country, which is much needed during these difficult times,” Francia added.
The Securities and Exchange Commission (SEC) approved last June an increase to P24.4 billion from P8.4 billion in the authorized capital stock of ACEPH.
The SEC also approved the issuance of additional primary shares to AC Energy Inc. to implement the asset-for-share swap that added 176 megawatt (MW) of generation capacity attributable to ACEPH’s portfolio.
Also, ACEPH acquired 145 MW worth of operating renewable energy plants earlier this year.
In the first half of 2020, the higher availability of thermal power plants and the significantly higher contracted capacity through the Manila Electric Co.’s (Meralco) competitive selection process for suppliers contributed to ACEPH strong results.
The increase in contracted capacity helped offset the reduced electricity delivery and lower spot market prices that were seen during the lockdown imposed to address the spread of the new coronavirus disease.
From January to June, South Luzon Thermal Energy Corp.—a joint venture with the Marubeni group and which operates a 244-MW plant in Batangas province—chalked up a record availability of 95 percent while ACEPH’s diesel plants reached 93 percent availability.
Further, contracts with Meralco related to a total of 310 MW—including 200 MW of round-the-clock electricity supply—came into force earlier this year.
Going forward, parent firm AC Energy will roll into ACEPH’s portfolio their overseas businesses which are mainly renewables such as solar and wind power.
The company “aspires to become the largest listed renewables platform in Southeast Asia, with the goal of reaching 5,000 MW of renewables capacity by 2025,” Francia said.