Quick takes from around the market

1. Aboitiz Power [AP 34.50, up 4.5%; 116% avgVol] [link] signed a joint venture agreement with Vena Energy and Vivant Energy to develop, construct, and operate a 206-megawatt wind power project in San Isidro, Visayas. AP expects the project to begin construction before the end of 2023, with commercial operations beginning in Q1/25. Vena Energy is a massive independent power producer with projects all across the Asia-Pacific region. Vivant Energy is a subsidiary of Vivant Corporation [VVT 15.48, down 0.1%; 10% avgVol].

MB quick take: AP is aggressively trying to build out its portfolio, and these kinds of tie-ups are a great way to move quickly and spread some risk around at the same time. I wish the announcement gave us info on how the project will be split between the parties so that we could get an idea of how AP will look to approach these kinds of deals going forward. It’s interesting that the VVT-authored press release listed a different capacity for the project (200-MW).

2. First Gen [FGEN 18.80, up 1.2%; 155% avgVol] [link] subsidiary, Energy Development Corp. (EDC), said that it would spend P60 billion over the next three years to boost the capacity of its geothermal power plants. Half of the money will be used to drill 40 wells (across four provinces), and the other half will be used for other “growth initiatives”. EDC currently has 482 wells across 13 geothermal power plants that have a combined capacity of 1,189 megawatts. FGEN is owned by the Lopez Family.

MB quick take: FGEN is a power-producing giant that has been the subject of delisting rumors for many years. Its free float is sitting at 11.67%, which at yesterday’s close, puts it about P1.2 billion in buybacks or acquisitions away from breaching the