ACEN, the listed renewable energy platform of the Ayala group, reports that its consolidated net income rose to PhP6.3 billion for the first half of 2024, a 49 percent increase year-on-year. This continued strong financial performance was propelled by 42 percent growth in attributable renewable energy generation and a further improved net selling position in the Philippine Wholesale Electricity Spot Market.
Financial Highlights
H1 2024 vs H1 2023
ACEN delivered strong financial results in the first half of 2024, recording substantial year-on-year growth across its key metrics. This performance continued to be driven principally by the year-over-year addition of new operating capacity from several renewable energy plants in the company’s major markets. In the Philippines, these new plants allowed ACEN to further improve its net selling position in the Wholesale Electricity Spot Market (WESM).
With the additional generated output from these new plants, core attributable earnings before interest, taxes, depreciation, and amortization (EBITDA), which considers ACEN’s share of EBITDA from non-consolidated operating projects and excludes all one-time items including cash gains, grew 21 percent over the same period last year to Php10.1 billion. Consolidated net income after tax attributable to the parent in turn grew significantly to PhP6.3 billion, a 49 percent increase over the first half of 2023. This amount includes PhP1.4 billion in net value realization gain from the partial repayment in Q1 of the company’s loan, at a premium, originally extended for the Mui Ne Wind project in Vietnam, and the completion of the sale of 100 percent of ACEN’s shares in the Sidrap wind farm in Indonesia in April. Excluding value realization, net income attributable to parent for H1 2024 was Php4.9 billion, increasing 21 percent year on year.
Operating Highlights
As of 30 June 2024, ACEN’s attributable renewables capacity stood at ~4.8 GW across its global portfolio. 69 percent of this capacity, or approximately 3.3 GW, is already fully or partially operational. With over 1 GW of signed agreements and competitive tenders won, ACEN has effectively surpassed its goal of building a portfolio of 5 GW of renewable energy capacity ahead of its end-2025 target.
Total attributable renewables output across ACEN’s markets, supported by the operationalization of several plants over the last six months, amounted to 2,908 GWh, a 42 percent increase year-on-year. This overall robust performance came despite the seasonally driven renewable energy resource drops in the second quarter – for wind in Northern Luzon and Vietnam, and for solar irradiance in Australia.
Philippines
Renewable energy plants in the Philippines generated 1,015 GWh in the first half of 2024, a 77 percent expansion over the same period in 2023. ACEN brought several solar and wind farms into operation during the first half of 2024, namely, the 385 MW phases 1 and 2 of SanMar Solar in Zambales, the 160 MW Pagudpud Wind and 70 MW Capa Wind in Ilocos Norte, the 133 MW Cagayan North Solar in Cagayan, and the second phase of the 116 MW Arayat-Mexico Solar joint venture in Pampanga. These new plants contributed 52 percent of ACEN’s renewable energy output in the Philippines this year.
ACEN’s net seller position in the WESM in turn grew 80 percent to 606 GWh, supported by the aforementioned operationalized plants. These plants allow ACEN to benefit from favorable WESM price movements, in addition to offering additional capacity to the retail electricity supply (RES) business, which grew its portfolio to 265 MW, a 51 percent increase year-on-year.
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International
ACEN’s international assets generated 1,893 GWh in attributable output, a 28 percent increase over the first half of 2023. Large-scale projects were commissioned this year, namely the 522 MW first phase of New England Solar in Australia, the 420 MW Masaya Solar in India, and the 60 GW Lac Hoa & Hoa Dong Wind in Vietnam. The 287 MW first phase of the SUPER solar platform in Vietnam, which was acquired in 2023, was also added to ACEN’s generation portfolio. While the second quarter saw seasonal decreases in wind and solar resources in some of these sites, these are expected to drive growth in ACEN’s international renewables generation moving forward.
Balance Sheet and Funding Highlights
Consolidated assets increased 8 percent to PhP309.1 billion as of 30 June 2024, and long-term investments grew 23 percent to PhP192.2 billion. Cash reserves stood at PhP20.2 billion, 49 percent lower than the end of 2023 as ACEN continues to deploy cash to fund growth across its markets. External debt also increased in line with ACEN’s expansion, growing 39 percent to PhP110.4 billion, with the net debt to equity ratio at 0.56.
In addition to its fundraising efforts in the first three months of 2024, ACEN continued to bolster its credit lines and facilities in the second quarter. As previously disclosed, the company, through its wholly owned unit ACEN Renewables International (ACRI), signed a USD150.0 million green term loan facility with SMBC Singapore in April. In July, ACRI also signed a long-term syndicated facility with five international banks led by CBTC Singapore. This facility, set up to support renewable energy projects, is composed of a USD 75.0 million five-year term loan and a USD75 million revolving loan available throughout the same five-year period. In total, ACEN currently holds unutilized credit lines of PhP80.0 billion.
Sustainability Highlights
In April, ACEN received verification for an additional carbon stock of 78 kilotons of carbon dioxide equivalent (CO2e) in its 625-hectare Conservation Estate in Ilocos Norte. This brings the total CO2 stored at the estate since its establishment in 2014 as part of its forest protection program to 345 kilotons.
In June, ACEN announced the Agro-Circularity in Renewable Energy (ACRE) program, a partnership with SariSuki, the Philippines’ largest online platform for fresh produce. ACRE aims to equip farmers in ACEN’s host communities with essential agricultural skills to cultivate suitable crops and streamline their supply chains to improve their market reach and profitability.
Eric Francia, ACEN President and CEO, said, “We have strong momentum on the back of a robust increase in operating earnings and steady progress with our project pipeline. We have won several new projects that we expect to add to our capacity within the next six to twelve months. We remain on track with our goal of achieving 20 GW of renewables capacity by 2030.”
Jonathan Back, ACEN CFO and Chief Strategy Officer, said, “We have begun to see the results of our emphasis on expediently bringing more of our portfolio into operation. With our newly-operationalized plants already contributing significantly, we can expect to see solid results for the remainder of the year. Our healthy balance sheet and robust EBITDA also help ensure that we remain well positioned to execute on ACEN’s strong growth opportunities.”
DISCLAIMER: This disclosure may contain forward-looking statements that are subject to risk factors and opportunities that may affect ACEN’s plans to complete the transaction/s subject of this disclosure. Each forward-looking statement is made only as of the date of this disclosure. Outcomes of the subject transaction may differ materially from those expressed in the forward-looking statements included in this disclosure.
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