Aboitiz Power mulls over IPO of RE arm

BY BUSINESSMIRROR – DECEMBER 19, 2022

ABOITIZ Power Corp. is weighing the pros and cons of the possible listing of its renewable energy arm in the local bourse.

Officials of the power firm said last week that an initial public offering (IPO) of Aboitiz Renewables Inc. (ARI) is “always an option that is open to us.”

“We know that we have a good renewable portfolio and we have a pipeline and there’s varied ways to extract value. We are evaluating several options. Whatever will be the right one, at a specific point in time, is what we will do,” said Aboitiz Power Chief Financial Officer Liza Luv T. Montelibano.

Aboitiz Power is pursuing to grow its renewable portfolio to 4,600 megawatts (MW) by the end of the decade.

Aboitiz Power, which owns ARI, is already listed. In arriving at a decision on whether to pursue or not an IPO, company president Emmanuel V. Rubio said “we also have to consider the implications to AP if we list ARI.”

“I think what investors will be valuing is your current assets, your ability to execute to meet your commitments and the value of your pipeline moving forward. Value of the assets, box ticked. History of execution, that can be ticked. But the pipeline is something we are developing. These are Cayanga, Laoag and the Tiwi binary—as the initial deliveries of the pipeline—and Libmanan, the mainstream project,” said Rubio.

JV agreement

EARLIER, Norwegian renewable energy firm Scatec ASA announced it was partnering with Aboitiz Power to develop over two gigawatts (GW) of wind power projects , mostly offshore, in the Philippines. Most of the wind power prospects are offshore projects.

ARI also entered into a joint venture agreement with Mainstream Renewable Power (Mainstream) to develop a 90-MW onshore wind project in Libmanan, Camarines Sur.

The joint venture, which is subject to regulatory approvals, is being delivered through an investment agreement for ARI’s proposed acquisition of a 60 percent stake in the Libmanan onshore wind project, which Mainstream has been developing since 2017.

Apart from renewables, the company is also considering to put up LNG (liquefied natural gas) plants possibly in Pagbilo and Cebu. “Yes, it’s an option in Cebu…by 2026, 2027. That’s when Cebu will need new capacities. And then 2029 and 2030 which is in Pagbilao,” Rubio said. “At the moment, we are exploring it together with our partner JERA.”