ACEN Corp. reported a 50 percent surge in first-quarter net income as expanded generation capacity and the recovery of key wind assets offset rising financing costs.

In a disclosure to the Philippine Stock Exchange on Tuesday, May 12, the renewable energy arm of the Ayala Group reported that its consolidated net income rose to ₱2.9 billion in January to March from ₱1.9 billion a year earlier.

According to ACEN, the first quarter results were bolstered by ₱1.5 billion in net non-recurring gains, including a ₱1.75 billion settlement related to a fixed-price contract with Manila Electric Co. (Meralco) and the ₱1.4 billion remeasurement gain from consolidating its UPC joint venture in India. These gains were tempered by a ₱1.2 billion provision for investments in Vietnam.

Excluding one-off items, ACEN’s core net income fell 27 percent to ₱1.4 billion. While the company benefited from a 32 percent jump in total attributable renewable energy output to 2,230 gigawatt-hours, the underlying performance was pressured by higher depreciation and interest expenses following a period of aggressive capital expenditure.

At end-March, ACEN’s domestic operations posted a significant rebound, with Philippine renewable plants generating 636 gigawatt-hours, a 29 percent increase from the previous year.

The growth was largely attributed to the restoration of the Pagudpud and Capa wind farms in Ilocos Norte. The Philippine unit recorded ₱9.8 billion in attributable revenue, while its retail electricity arm, ACEN RES, captured a 57 percent market share of the Green Energy Option Program, adding clients such as the Makati City government and retail chains Lawson and Serenitea.

On the other hand, international markets remained a primary driver of volume growth. In Australia, generation soared 87 percent to 528 gigawatt-hours, aided by better solar conditions at New England Solar and new contributions from the Stubbo Solar project.

Attributable revenue from Australian operations reached ₱1.45 billion. ACEN also expanded its storage footprint, with the 200-megawatt New England Energy Storage facility entering commissioning in February.

Output from ACEN’s Mekong portfolio, which includes assets in Vietnam and Lao PDR, rose 20 percent to 556 gigawatt-hours, supported by the commencement of the Monsoon Wind project. In Indonesia, the Salak and Darajat geothermal plants saw a 6 percent uptick in production.

ACEN’s balance sheet showed total assets of ₱381.5 billion at the end of March, with cash reserves of ₱16.0 billion. Statutory net debt rose to ₱158.3 billion as the firm continues to fund its regional expansion.

Eric Francia, ACEN chief executive officer, said the global geopolitical landscape has reinforced the company’s strategy.

“The current geopolitical crisis has only reinforced our core belief that energy security and the renewables transition are inseparable,” Francia said in the statement, adding that the company's capital program remains intact.

For his part, Jonathan Back, ACEN group chief financial officer, noted that while one-time transactions skewed the quarterly figures, the continued expansion of the generation base has strengthened the company's financial foundation.

ACEN currently aims to reach 20 gigawatts of renewable capacity by 2030. (Gabriell Christel Galang)