Ayala-led ACEN Corporation has recorded a Php 13.1 billion net income in 2022, a massive jump from the Php 5.3 billion profit made in the previous year.
“This included ₱8.6 billion of net impact in revaluation gains resulting from the company’s full acquisition of the Australia platform, as well as provisions for a Supreme Court decision voiding the Philippine Electricity Market Corporation (PEMC)’s Administered/Regulated Pricing (ARP) regime and for the Lac Hoa & Hoa Dong Wind project in Vietnam,” ACEN said in a statement on Thursday.
The said SC decision nullified the administered pricing enforced on the capacities being traded in the Wholesale Electricity Spot Market (WESM) was a delayed recovery from 2013.
ACEN’s attributable earnings before interest, taxes, depreciation and amortization (EBITDA) were at Php 14.3 billion in 2022, a five percent decrease from 2021.
“This was due to challenges in Philippine operations, whose contribution to attributable EBITDA dropped 29% year-on-year to ₱5.2 billion in 2022. High cost of power due to net merchant buying at elevated WESM prices and typhoon-related curtailment contributed to the decline,” ACEN said.
Contributions from international operations, however, were able to offset the decline as the attributable EBITDA rose 20% to Php 9.5 billion, driven by new operating capacity in Vietnam and India.
“In 2022, the Philippine power sector weathered significant challenges caused by our country’s continued dependence on high-priced coal and unserved power demand, and as a result, we felt the impact of the high cost of power,” ACEN president and CEO Eric Francia said.
ACEN has around 2,400 MW of projects under construction with Php50-70 billion in capital expenditures for 2023 as it continues to grow its renewable energy portfolio.
“With 700 MW in new capacity expected to come online in the Philippines by the end of the year, and another 521 MW of new capacity commencing operations in Australia, we expect to move into a net selling merchant position and be on a stronger footing in 2023,” Francia said.
ACEN currently has 4,000 MW of attributable renewables capacity in operation and under construction across the Philippines and the region.
The Ayala-led company is looking to achieve 20 GW of renewable energy capacity by 2030.
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