Ayala-led ACEN Corp. reported a drop in its net income for the first half of 2025, primarily due to a one-time non-cash impairment of its two wind assets in Vietnam, along with lower electricity prices and higher operating costs.

In a disclosure to the Philippine Stock Exchange (PSE) on Tuesday, Aug. 5, ACEN said its consolidated net income saw an 88-percent decrease to ₱763 million in the first six months of the year, mostly driven by the ₱2.7-billion impairment from its Lac Hoa and Hoa Dong wind farms in Vietnam.

Its net income subsequently declined by 24 percent to ₱1.35 billion due to lower prices in the Wholesale Electricity Spot Market (WESM), along with increased depreciation.

ACEN’s markets in the Philippines and Australia faced challenges, including lower solar irradiance, higher plant-related costs like depreciation, and ongoing wind turbine repairs in the Philippines.

Eric Francia, ACEN president and chief executive officer (CEO), assured that the company is looking for strategies to raise its capacities and improve investments in energy storage.

“ACEN continues to face macro and sectoral headwinds in 2025, underscoring the challenges of energy transition. The company's underlying health and long-term prospects remain robust, and we have been leveraging opportunities to increase contracted capacities and expand investments in energy storage,” he said.

“Our teams are actively addressing the various challenges encountered during the quarter, with a relentless focus on execution. We expect to operationalize ACEN's capacity at a more calibrated pace, ensuring that margins remain optimal at all levels,” said Jonathan Back, ACEN chief financial officer (CFO) and chief strategy officer.

Despite this, ACEN’s overall attributable renewables output saw a marginal nine-percent increase to 3,228 gigawatt-hours (GWh), as its international portfolio, particularly contributions coming in from Indonesia, Vietnam, and others, drove the increase in renewable energy (RE) production.

According to ACEN, around 3.6 GW of its seven-GW renewables portfolio is currently operational. Including projects in the commissioning phase, the total operational capacity has risen to approximately 4.1 GW.

The company has 2.4 GW of projects under construction, with an additional 514 MW in committed capacity.

The Philippine market, however, saw a slight slowdown in RE generation during the first half of 2025.

Due to weaker solar resources and ongoing turbine repairs at the 160-MW Pagudpud wind and 70-MW Capa wind, ACEN’s generation decreased by nine percent to 928 GWh. Lower spot market prices were also factored in.

“Most of the affected capacity is on track to be restored by the fourth quarter of 2025, in time for the next high wind season,” it explained.

While the company has yet to boost its domestic generation, ACEN assured steady progress on the first phase of the 345-MW Quezon North wind project.

ACEN Renewable Energy Solutions (ACEN RES), on the other hand, saw a slight four-percent uptick to 427 MW due to its customers in the education, finance, and logistics sectors.

In May, ACEN, through its affiliates, signed a deal to acquire a 25-percent stake in Copenhagen Infrastructure Partners’ (CIP) planned 1-GW offshore wind project in Camarines Sur. The project is still in pre-development and pending regulatory approvals ahead of the fifth round of the Green Energy Auction (GEA-5).

Steering away from the Philippines, ACEN Australia’s two-percent decline in revenues was caused by the lower solar irradiance and a reduction in large-scale generation certificate (LGC) prices.

“These were partially offset by income contributions from the faster-than-expected commissioning of Stubbo Solar, which is on track to achieve full commercial operations by the third quarter of 2025, and within budget,” it said.

ACEN Australia’s generation rose to 536 GWh, supported by early energy injection into the National Electricity Market (NEM). Meanwhile, construction continues on the 200-MW New England battery, set for completion in the first half of 2027.

Its investment in India saw a seven-percent growth in renewable generation due higher production from its 420-MW Masaya solar farm. The company is expanding its presence with the 408-MW Sheo 2 hybrid project cleared to proceed, along with ongoing construction of the Tejorupa solar and Bijapur wind projects.

Even with the non-cash impairment record, Vietnam’s attributable output rose 25 percent year-on-year, driven by contributions from operating wind and solar plants.

Commissioning has also started for the 600-MW Monsoon wind project, which is on track to begin commercial operations in the second half of 2025.