ACEN earnings up 22% to P4.3 billion in 9 months

MANILA, Philippines — AC Energy Corp. (ACEN) said its nine-month net earnings rose by more than a fifth to P4.3 billion on the back of demand recovery and contributions from acquisitions and new projects.

In a disclosure to the Philippine Stock Exchange yesterday, ACEN attributed the improvements to the continued recovery of electricity demand in Luzon, as well as the growth in new operating capacity from recent acquisitions and greenfield projects.

On the other hand, the higher cost of purchased power due to elevated spot market prices, tempered the company’s earnings before interest, taxes, and depreciation (EBITDA), which rose 13 percent to P9.4 billion versus the previous year.

“ACEN continues to be a direct beneficiary of the steady resurgence in consumer confidence in both the Philippines and Asia-Pacific. The company continues to aggressively rollout renewable energy investments in the Philippines and across the region, and is well-positioned to address the tightening supply-demand dynamics, as electricity demand continues to recover and fossil fuels become more expensive,” ACEN president and CEO Eric Francia said.

ACEN’s attributable output rose by 17 percent to 3,378 gigawatt-hours (GWh), partly driven by the 13 percent growth in renewable energy (RE) output and a 20 percent jump in generation from the Philippine assets.

The company has 2,875 megawatts (MW) of attributable capacity in the Philippines and across the region, of which 1,908 MW are already operating.

“ACEN’s robust financial and operating performance is largely driven by various capacity expansion initiatives, which are well-supported by the company’s strong balance sheet. Our recent $400-million fixed-for-life perpetual green bond offering, in addition to our previous equity issuances and liability management deals, further ensure our ability to grow the business in line with our strategic plans,” ACEN chief financial officer and treasurer Cora Dizon said.

In September, the company’s subsidiary ACEN Finance Ltd. issued $400 million undated fixed-for-life green bonds at a low interest rate of four percent.

With previous equity issuances and the investment by GIC’s Arran Investment Pte Ltd., ACEN has raised close to $1 billion in fresh capital this year.

In a separate disclosure, parent company Ayala Corp. said AC Energy and Infrastructure Inc. (ACEIC) had mandated Credit Suisse (Hong Kong) Limited as dealer manager for an any-and-all tender offer of its $400 million 5.65 percent guaranteed undated notes.

Of the total, $213.11 million is currently outstanding, the subject of the tender offer which will expire at 4 p.m., London Time, on Nov. 17.

AC said the notes were issued by ACEIC’s wholly owned subsidiary AC Energy Finance International Ltd.