ACEN profit rises in Q2 but dips in H1 amid elevated spot market prices

The energy platform of the Ayala Group saw its second quarter net income grow by a quarter to P1.78 billion, largely driven by recovery in domestic markets and fresh contributions from new solar and wind farms.

However, ACEN’s six-month earnings dropped by 19 percent to P2.2 billion as first quarter results were weighed down by higher costs of purchased power due to elevated spot market prices during a major preventive maintenance outage of the South Luzon Thermal Energy Corp.’s coal plant.

“The Philippine business has returned to profitability as we start to recover from short-term headwinds experienced in the first quarter of the year,” said ACEN chief finance officer and treasurer Cora Dizon.

Consolidated revenues grew 19 percent to ₱16 billion in the first semester with higher spot market prices offsetting the impact of curtailment and customer buyout fees in the first quarter.

Improvements in plant availability also allowed ACEN some excess capacity, thus enabling the company to benefit from high wholesale electricity prices during the second quarter.

Attributable output in the first half reached 2,482 gigawatt hours, up 11 percent due to increased operating capacity from the company’s wind farms in Vietnam and solar plants in India, which offset the impact of thermal outages in the first quarter.

ACEN has close to 4 GW of pro forma attributable capacity spread across five countries in the APAC region, of which 87 percent is renewable.