Lower asset values, power prices cause 78% drop in ACEN’s profit

Impairment losses from ACEN Corp.’s Vietnam wind parks and softer power prices caused a 78-percent drop in the Ayala unit’s earnings in the January-September period.

ACEN’s nine-month net income attributable to equity holders of the parent company settled to P1.8 billion this year from P8.14 billion a year ago.

The firm said in a disclosure its top line also fell by 18 percent to P23 billion from P28 billion.

But ACEN noted that its core attributable earnings before interest, taxes, depreciation, and amortization improved by 9 percent to P15.6 billion. This was thanks to the company’s third-quarter performance.

Total attributable renewables output reached 4,843 gigawatt-hours (GWh), up 16 percent from a year ago. The group’s facilities abroad generated more electricity, surging by 26 percent to 3,539 GWh.

Output from ACEN’s renewables assets in the Philippines, meanwhile, dipped 6 percent to 1,305 GWh. This was due to wind turbines going offline in Ilocos Norte.

ACEN, however, said most of these facilities were already repaired and operational.

In Ilocos Norte, the company operates a wind park in Bangui (52 megawatts, MW) and two in Pagudpud (81 MW and 160 MW).

Despite the weak financial results, ACEN’s top official remained optimistic about bouncing back. The group is banking on the activation of new assets abroad, particularly the Stubbo solar park in Australia and the Monsoon wind project in Laos.

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“We continue to build on the momentum across our various markets, with new capacity coming online and a robust pipeline driving future growth,” said Eric Francia, ACEN president and chief executive officer.

“We remain focused on scaling our renewables portfolio and accelerating investments in energy storage in particular, with a long-term strategy anchored on disciplined expansion, strong partnerships, and delivering sustainable value,” Francia added.

Beyond the Philippines, ACEN has been investing heavily in other markets to further build up its renewable energy portfolio. It is also present in Australia, Vietnam, India and the Lao PDR.

The group currently has 7,000 MW of attributable renewable capacity.