ACEN profit slumps on impairment

ACEN Corp., the listed energy platform of the Ayala Group, sustained an 88 percent drop in consolidated net income to P763 million in the first half of the year, from P6.3 billion a year ago, due to a P2.7-billion impairment loss related to its wind projects in Vietnam.

In a stock exchange report on Tuesday, the company said the impairment stemmed from the Lac Hoa and Hoa Dong wind farms, which have been operating under a lower permanent tariff since June, after prolonged delays and commercial operations under provisional rates. The combined attributable capacity of the projects is 48 megawatts (MW).

Excluding this one-off loss and a P1.35-billion valuation gain booked in 2024, ACEN’s net income still fell 24 percent year-on-year, weighed down by depressed spot market prices and increased depreciation.

Macro, sectoral headwinds

“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,” ACEN president and CEO Eric Francia said.

ACEN said its first-half performance reflected challenges in key markets, especially the Philippines and Australia.

In the Philippines, Wholesale Electricity Spot Market prices dropped 32 percent year-on-year to P3.8/kWh due to cooler weather, slower demand, and higher capacity, pressuring margins from ACEN’s net selling position of 1,122 GWh.

Plant-related costs and turbine repairs also dragged performance, alongside weaker solar irradiance in both the Philippines and Australia.

Despite this, attributable renewable energy output rose 9 percent to 3,228 GWh, driven by new international plants. Core attributable EBITDA held steady at P10.5 billion, with plant-level margins above 70 percent.

Philippine renewables generation

Philippine renewables generation fell 9 percent to 928 GWh. Most affected capacity from Pagudpud and Capa wind farms is expected to be restored by Q4 2025. ACEN is progressing on the first 345 MW phase of the Quezon North Wind project.