8 November 2022 – ACEN, the listed energy platform of the Ayala group, today reports that its consolidated net income for the third quarter of 2022 rose 23% YoY to PhP1.9 billion. This brings net income booked from January to September to PhP4.1 billion, down just 4% from the same period last year, as strong international growth offset the decline in Philippine earnings.
Consolidated revenues in the first nine months of the year increased 34% to PhP25.2 billion, mainly driven by contributions from new operating Philippine merchant plants, which offset the impact of thermal outages and curtailment in the Visayas earlier in the year.
The third quarter showed the value of the diversity of ACEN’s portfolio, as strong earnings from the international business offset the decline in Philippine earnings primarily due to plant availability issues and the higher cost of power. Attributable output from January to September grew 11% to 3,740 GWh in 2022, driven by the full nine-month contribution of new Vietnam wind farms and India solar plants.
Eric Francia, ACEN president and CEO, said, “The Philippine market continues to be challenging given the tight power supply situation and high fossil fuel prices. However, we expect a significant increase in our renewables operating capacity by the middle of 2023, which will not only help address the country’s energy needs, but also significantly improve the company’s financial performance.”
Just yesterday, ACEN announced the divestment of South Luzon Thermal Energy Corporation (SLTEC) and the completion of the world’s first market-based Energy Transition Mechanism (ETM) transaction that will enable the early retirement of the 246-MW SLTEC coal plant by 2040 and its transition to a cleaner technology. The coal plant’s operating life will be reduced by up to 25 years and will help avoid up to 50 million metric tons of carbon emissions. ACEN received PhP7.2 billion from the ETM for reinvestment into the company’s renewable energy projects.
In September, ACEN issued its maiden Peso ASEAN Green Bonds worth PhP10.0 billion, at a fixed interest rate coupon of 6.0526% with a five-year tenor, or due in 2027. With strong participation from leading institutional investors, the bonds were 8.6x oversubscribed. The bonds have been rated PRS Aaa, the highest possible from Philippine Rating Services Corp. (PhilRatings), and are listed on the Philippine Dealing & Exchange Corp. (PDEx) platform.
Recently, ACEN also executed agreements of ACEN Australia for Green long-term loans with DBS Bank Australia in August for a AU$100-million long-term revolver facility, MUFG Bank Sydney Branch in September for a AU$140-million facility, and the Australian government’s Clean Energy Finance Corporation (CEFC) in October for a AU$75-million investment. These transactions are part of ACEN’s aim to raise over AU$600 million to support the development of its renewable energy projects in Australia.
Cora Dizon, ACEN CFO and treasurer, said, “We continue to grow our balance sheet as we strive to achieve 20 GW renewables capacity by 2030. In the third quarter alone, through the ETM, as well as our peso Green bonds and Australian dollar Green loans, we’ve seen strong support from financial investors and several local and international banks to fund our renewables expansion, as we target to achieve Net Zero carbon emissions by 2050.”
