SPNEC nets P5.7B from wider solar reach in 2023

The expanding renewable energy empire of SP New Energy Corp. (SPNEC), an energy company founded by young businessman Leandro Leviste and now chaired by tycoon Manuel V. Pangilinan, has led to higher profits in 2023.

In a stock exchange report on Wednesday, SPNEC disclosed that its net income last year clocked in at P5.7 billion after it managed to grow its assets to P51.2 billion last year — representing a whopping 825 percent surge from P5.8 billion in 2022.

Likewise, SPNEC’s equity also ballooned to P42.4 billion by the end of 2023, up 730 percent from P5.8 billion in equity in the previous year.

Meralco as majority owner

Notably, this latest financial report released by SPNEC is the one following the entry of Pangilinan’s Manila Electric Co. (Meralco) as a majority owner.

SPNEC stated that Meralco’s entry, which facilitated the commencement of construction for the P200-billion Terra Solar project, significantly contributed to the company’s growth.

Touted as the world’s largest solar project, this undertaking in Nueva Ecija and Bulacan will comprise 3,500 MW of solar panels and 4,000 MWh of battery storage. It is targeted to begin operations by 2026.

SPNEC also operates a 63-MW solar farm in Calatagan, Batangas, and another 150-MW farm in Concepcion, Tarlac. These assets generated P1.1 billion in revenue for the full year of 2023.

MGreen investment

In December 2023, MGen Renewable Energy (MGreen) completed its P15.9-billion investment resulting in a 50.5 percent voting interest in SPNEC.

Earlier this year, MGreen also acquired another 2.17 billion shares of SPNEC from Solar Philippines Power Project Holdings Inc. for P2.50 billion.

MGreen is a wholly-owned subsidiary of Meralco Powergen Corp., which in turn is a wholly-owned subsidiary of Meralco, the country’s largest power distributor whose parent firm is the Pangilinan Group’s Metro Pacific Investments Corp.

Solar Philippines continues to own 18.993 billion shares of SPNEC, with other shareholders and the public owning the remaining shares.