ACEN profit up 149% on one-off gains from Aussie unit

MANILA, Philippines  – Ayala-led ACEN Corp.’s net profit last year soared by 149 percent to P13.1 billion, mostly due to one-off revaluation gains from its full acquisition of its Australian platform.

Consolidated revenues last year grew by 35 percent to P35.2 billion, owing to full-year contribution from new Philippine merchants.

In a disclosure to the Philippine Stock Exchange on Thursday, ACEN reported that its 2022 net income included P8.6 billion worth of revaluation gains its Australia platform as well as provisions for a Supreme Court decision voiding the regulated pricing regime of Philippine Electricity Market Corp. and the Lac Hoa & Hoa Dong Wind project in Vietnam.

However, cash flow as measured by earnings before interest, taxes, depreciation and amortization dropped 5 percent to P14.3 billion due to typhoons and the high cost of power.

Philippine operations saw a 29-percent decline in cash flow to P5.2 billion, but international operations offset this with a P9.5-billion contribution.

ACEN’s new international assets contributed over 2,500 gigawatt hours (GWh) to its total output of around 5,000 GWh due to newly operational wind farms in Vietnam and solar farms in India.

“In 2022, the Philippine power sector weathered significant challenges caused by our country’s continued dependence on high-priced coal and unserved power demand, and, as a result, we felt the impact of the high cost of power,” said Eric Francia, ACEN president and CEO.

But Francia remained optimistic for 2023, citing 700 megawatts (MW) in new capacity expected to be added in the country by yearend. Another 521 MW of new capacity would also commence operations in Australia, he added.

“We expect to move into a net selling merchant position and be on a stronger footing in 2023,” Francia said.

Last year, ACEN expanded its renewable energy projects, spending P50.6 billion in capital expenditure for the construction of over 1,300 MW of new solar and wind farms in the Philippines, Australia and India.

It expects to spend P50 to P70 billion on capex this year for other renewable energy projects.

At present, ACEN has more than 2,400 MW of projects under construction, including the 520-MW Stubbo solar farm in Australia.

ACEN completed its exit from the 246-MW South Luzon Thermal Energy Corp. coal plant through a market-based energy transition mechanism. It raised P7.2 billion from the full divestment, which will be used to fund renewable energy projects.

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