Alternergy’s Profits Dip, But Strong Investments Position It for Growth

Alternergy Holdings Corporation (ALTER) reported a 26.89 percent decline in net income, reaching P88.6 million for the six-month period ending December 2024, down from P121.2 million in the same period the previous year. The company attributed the drop primarily to lower wind production at its Pililla Wind Farm, which experienced weaker wind speeds during the reporting period.

Despite the dip in profits, Alternergy strengthened its financial position, growing total assets by 44 percent to P12.55 billion while securing P4.4 billion in cash reserves through successful project financing. The company has also infused P2.1 billion in equity to jumpstart construction on several key renewable energy projects that are expected to drive growth in the coming years.

While wind generation declined, Alternergy saw strong revenue growth from its solar assets. The company posted an 81 percent increase in operating revenues, reaching P181 million in the first half of fiscal year (FY) 2025, compared to P100 million during the same period the previous year.

The revenue boost was largely driven by the Palau Solar Power Project, which achieved commercial operations in December 2023. The inclusion of six months’ worth of operating results from the 15.3 MWp Palau solar PV facility and its 12.9 MWh Battery Energy Storage System (BESS) significantly improved Alternergy’s financial performance, offsetting some of the losses from its wind operations.

Alternergy’s other solar assets, including the Kirahon Solar Project and CityMall rooftop solar portfolio, also contributed steady revenues. However, the company acknowledged that operating revenues from the Pililla Wind Farm declined due to weaker wind production.

Looking ahead, Alternergy is aggressively expanding its renewable energy portfolio as part of its “Road to 500 MW” goal. The company is currently constructing four major renewable projects, which are expected to be completed by 2025. These include the 128 MW Tanay Wind Power Project, the 64 MW Alabat Wind Power Project, the 28 MWp Balsik Solar Power Project, and the 4.6 MW Dupinga Run-of-River Power Project. These projects are set to significantly boost Alternergy’s revenue stream and market position in the renewable energy sector.

Alternergy President Gerry Magbanua expressed confidence in the company’s growth trajectory, stating, “As we complete four additional projects and bring these to commercial operations, we expect a further boost in ALTER’s revenues by 2026.” He also underscored that the company’s strong cash position and project financing arrangements are vital in ensuring that these renewable projects move forward without major delays.

The company’s P2.1 billion equity infusion was primarily directed toward funding the construction of its Tanay Wind, Alabat Wind, and Balsik Solar Projects. Magbanua emphasized that these are strategic investments that will drive Alternergy’s growth trajectory and strengthen its position in the renewable energy market.

Additionally, Alternergy’s successful project financing drawdowns have helped secure the capital needed to scale its wind and solar operations, reinforcing its commitment to expanding clean energy generation in the Philippines. With a robust pipeline of projects, the company is positioning itself to become a major player in the country’s renewable energy sector.

What do you think of Alternergy’s aggressive renewable energy expansion despite its temporary profit decline? Will its strategic investments pay off in the long run? Share your thoughts in the comments below and follow Power Philippines for the latest updates on the country’s energy sector!