ACEN sees better year despite Middle East war

ACEN Corp. is unfazed by the war in the Middle East, with its top executive saying the firm remains positioned to post “stronger” growth this year with the activation of bigger power facilities.

Its president and CEO Eric Francia said operations of the group’s power plants outside the Philippines and Australia are mostly stable despite sharp fuel price increases caused by the Middle East war.

“It’s not that impacted because we don’t rely on fuel, and the tariff is fixed. So there’s hardly any impact on operating plants outside of the Philippines and Australia,” he told reporters Wednesday.

Assets under construction, meanwhile, are expected to face supply chain challenges. But Francia said this was “common to all geographies,” given the situation.

The Philippines is ACEN’s core market, but the Ayala Group’s listed energy arm has also successfully built its presence in Australia, Vietnam, Lao PDR, Indonesia and India.

The company’s consolidated net income plunged to P3.8 billion last year, a 60-percent drop from P9.36 billion, as it suffered from weaker power prices and the temporary shutdown of some Northern Luzon wind assets.

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Francia said ACEN is regaining its strength, especially with the affected wind farms now operational, delivering an “instant uplift” to the group’s bottom line.

The official also said additional capacity from large power plants in Australia and Laos would support performance growth.

“And then, of course, we have some inventory, renewable inventory to sell to the market. So, as an alternative to a more expensive fossil fuel price, we should be able to give competitive rates that are also good for the economics of the plant,” he said.