AC Energy registers income in January-June

By Lenie Lectura – August 13, 2020
from Business Mirror

Key investments allowed AC Energy Philippines Inc.’s (ACEPH) to post a net income of P1.96 billion in the first half, a significant turnaround from the P552-million net loss it incurred in the same period last year.

“The strong performance was mainly driven by the successful infusion of AC Energy, Inc.’s on-shore assets and recent acquisitions,” the company said in a statement Wednesday.

In June, the Securities and Exchange Commission (SEC) approved the increase in the authorized capital stock of ACEPH and the issuance of additional primary shares to AC Energy Inc. to implement the asset-for-share swap that added 176megawatts (MW) of attributable capacity. As a result, ACEPH recognized earnings retroactively.

Furthermore, the company acquired 145 MW worth of operating renewable energy plants early in 2020.

Also, higher availability of thermal plants and significantly higher contracted capacity through the Meralco Competitive Selection Process also contributed to the strong results. For instance, South Luzon Thermal Energy Corp. (SLTEC) registered record availability of 95 percent in the first half, while the peaking diesel plants reached 93 percent availability in the same period.

The company commenced its 200 MW baseload and 110 MW mid-merit contracts with Meralco earlier this year. The increase in contracted capacity offset the reduced volumes and lower spot market prices experienced during the community quarantine that started mid-March.

“We’re very pleased with the company’s turnaround and the successful integration of AC Energy’s on-shore operations,” said AC Energy President and CEO Eric Francia. “This allows us to make additional near-term investments in the country, which is much needed during these difficult times.”

Earlier this year, the company announced its plans to also integrate AC Energy’s international business. It is now in the process of changing its corporate name to AC Energy Corp., which is subject to regulatory approval.

Meanwhile, the company recently received the Philippine Stock Exchange’s nod to change its stock symbol from ACEPH to ACEN, effective August 14. The shift to ACEN signifies the forthcoming integration of AC Energy’s onshore and offshore business into a unified platform.

“ACEN aspires to become the largest listed renewables platform in Southeast Asia, with the goal of reaching 5000 MW of renewables capacity by 2025,” added Francia.