August 5, 2021 – MANILA, Philippines — AC Energy Corp. reported higher earnings in the first half, thanks to improving power demand and contribution from its newly operational renewable energy projects.
The listed power unit of the Ayala Group netted P2.7 billion during the January-June period, up 5% year-on-year, according to a disclosure to the stock exchange on Thursday. AC Energy’s six-month earnings included profits from operations of its power assets abroad, which were recently infused into the company by its parent AC Energy and Infrastructure Corp. (ACEIC).
Investors seemed impressed with the company’s financial results. As of 10:59 a.m., shares in AC Energy were trading up 1.65%, bucking losses in the main index.
Dissecting AC Energy’s report, consolidated revenues in the first six months rose 35% on-year to P13.4 billion. The company said local energy demand has recovered — even exceeding pre-pandemic levels — as the economy emerges from pandemic lockdowns, while its new clean power investments are beginning to pay off.
“We’re very pleased with the significant momentum in our renewables expansion both in the Philippines and around the region,” Eric Francia, company president and chief executive, said.
Demand recovery was so strong, particularly in Luzon, that AC Energy’s attributable output rose an annualized rate of 16% to 2,224 gigawatt-hours in the first half to meet the growing power needs. Good thing that AC Energy’s attributable capacity grew 56% year-on-year to 2,589 megawatts, as four new power plants at home and abroad started to run.
But the company said six-month revenues would have been higher had it not been for higher power prices in the spot market, where it sourced some electricity to bridge supply gaps during thermal power outages.
AC Energy is among the major corporations that are shifting to clean power investments, with renewables now accounting for 80% of the company’s capacity following the integration of its energy assets abroad. In the first half, renewable sources accounted for 52% of AC Energy’s total output, figures showed.
The Ayala Group is planning to fully abandon its coal investments by 2030.
According to AC Energy, it currently has over 1,000 MW of attributable capacity under construction, with over half of the projects expected to be operational within the next 6-12 months.
In a separate disclosure to the stock exchange also on Thursday, AC Energy said a subsidiary would enter into a joint venture with solar photovoltaic developer NEFIN Holding Limited to develop, construct and operate rooftop solar projects across Asia.
“With our robust balance sheet and strong pipeline, the company is well poised to attain our goal of reaching 5000MW of renewables capacity by 2025,” Francia said.