ACEN 9M net income: P6.6-B (UP 59% y/y)

ACEN [ACEN 5.19, down 2.1%; 115% avgVol] [link] teased its Q3 and 9M results, headlined by a 9M consolidated net income of P6.6 billion (+59% y/y), boosted largely by the sale of ACEN’s interest in two geothermal power plants in Indonesia. Consolidated revenues for the period were up 13% to P28.6 billion, with “core operating earnings” up 100% thanks to new operational capacity coming online and ACEN’s “shift to a set selling merchant” in 2023. ACEN did warn that its Q3 operating earnings dipped due to scheduled plant maintenance and seasonably low wind and spot electricity prices, but added that it was able to maintain its position as a net seller thanks to the new capacity that came online this year. ACEN reported that its attributable renewables output was up 27% to 3,174 gigawatt-hours.

MB bottom-line: ACEN’s CEO, Eric Francia, said that ACEN is on a “healthy growth trajectory” despite some delays in major development projects. ACEN is expecting around 700 MW of solar and wind capacity to come online in the first half of 2024, and getting that income into the Q3/24 and Q4/24 financial statements will help boost ACEN’s FY24 performance. Unlike a company like SP New Energy [SPNEC suspended], which is more focused on monetizing its permits and legacy real estate, ACEN’s continual development will only improve its performance over time as the projects come online and cashflows from the sale of electricity stabilize. Shareholders are probably looking for any good news, though, since ACEN’s stock has performed so poorly over the short, medium, and long term. It’s down 35% year-to-date, and down over 59% from its high set back in October of 2021. Over that span there were highs and lows, but the overall trend (of lower lows and lower highs) has been unforgiving.

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