Alternergy gets earnings push from Palau project

MANILA, Philippines  —Renewable energy firm Alternergy Holdings Corp. saw its earnings balloon to P121 million in the July to December 2023 period on the back of an increase in revenues from its overseas solar and battery energy storage project.

This is a steep climb from just P879,000 that was recorded in the same period in 2022, just months before the company headed by former Energy Secretary Vicente Perez Jr. debuted on the Philippine Stock Exchange. This period marks the first six months in the fiscal year of Alternergy that began in July.

Alternergy attributed the growth to better revenues from the testing and commissioning of its $29-million solar and battery energy storage system project in the Republic of Palau.

“Our solid first half financial result has given us leverage to push our projects at an even more accelerated [pace] and strategically positions us for our ongoing capital raising efforts,” Alternergy president Gerry Magbanua said in a statement on Thursday.

The company’s total assets grew by 31 percent to P6.39 billion from P4.87 billion due mainly to the private placement made by the Government Service Insurance System (GSIS) in November.

READ: GSIS invests P1.45B in Alternergy

Private placements involve the direct sale of stocks to a private investor, as opposed to a public offering.

New capital

GSIS had subscribed to 100 million of Alternergy’s preferred shares at P14.50 per share to help fast-track the development of renewable energy infrastructure in line with the government’s energy transition plans.

Meanwhile, earnings before interest, taxes, depreciation and amortization swelled by 166 percent to P179.34 million.

Last year, Alternergy pursued various finance activities to obtain capital for its project pipeline, as it plans to develop up to 366 megawatts of additional wind, solar and run-of-river hydropower projects in the next three years.

Its planned projects include the Tanay and Alabat wind power projects, which must be available by 2025.

Alternergy raised P1.62 billion from its initial public offering in March last year. Of the total, P113 million and P100 million will go to the development of the Tanay and Alabat projects, respectively.

READ: Alternergy draws upon IPO funds for wind projects won in auction

“We are excited for the coming months as Alternergy is expected to break ground for our Alabat and Tanay wind power projects. At the same time, generation revenues from the Palau project will be recognized in full in the succeeding months following the achievement of commercial operations,” Magbanua said.