SPNEC books P5.7 billion earnings on asset gain

MANILA, Philippines — Pangilinan-led SP New Energy Corp. (SPNEC) booked a net income of P5.7 billion in 2023 after gaining a 100-percent interest in Terra Solar Philippines.

The renewable energy firm chaired by tycoon Manuel V. Pangilinan recorded almost a nine-fold surge in assets to P51.2 billion in 2023 from P5.8 billion in 2022.

Likewise, its equity stood at P42.4 billion or 7.3 times the year-ago level of P5.8 billion.

“This marks SPNEC’s first financial report following the entry of Pangilinan-led Manila Electric Co. (Meralco) in the company,” SPNEC said in a disclosure.

“The numbers reflect the growth resulting from Meralco’s investment in SPNEC, as it gears up to build the P200-billion Terra Solar project,” the company added.

SPNEC’s Terra Solar, the world’s largest solar project, is targeted to begin operations by 2026.

According to the company, Terra Solar’s P200-billion solar developments in Nueva Ecija and Bulacan consist of 3,500 megawatts (MW) of solar panels and 4,000 megawatt-hours of battery storage.

Last December, SPNEC secured 3,431 hectares of land for development, comprising 2,976 hectares purchased and 454.9 hectares leased for the Terra Solar developments.

Likewise, MGen Renewable Energy (MGreen) concluded its P15.9-billion investment, resulting in a 50.5 percent voting interest in SPNEC in December last year.

MGreen also spent P2.5 billion to acquire 2.17 billion shares of SPNEC from Solar Philippines Power Project Holdings Inc. last January.

Solar Philippines, which was founded by Leandro Leviste, owns 18.99 billion shares of SPNEC, “with other shareholders and the public owning the remaining shares.”

MGreen is a subsidiary of Meralco Powergen Corp., which in turn is a wholly owned subsidiary of Meralco.

Besides the Nueva Ecija development, SPNEC also owns and operates a 63 MW solar farm in Calatagan, Batangas and a 150 MW solar farm in Concepcion, Tarlac.

For the full year 2023, these operating assets generated P1.1 billion in revenues.