ACEN eyes equity raise to fund RE expansion

By Sheldeen Joy Talavera, Reporter

ACEN CORP. is evaluating options to raise fresh equity capital within the next six to 12 months as it pushes to meet its target of reaching 8 gigawatts (GW) in renewable energy (RE) capacity by year-end, its top executive said.

Speaking at the company’s annual stockholders’ meeting on Wednesday, President and Chief Executive Officer Eric T. Francia said the company is exploring various funding sources to support its expansion while maintaining a strong balance sheet.

“Timing and structure will ultimately depend on prevailing market conditions,” Mr. Francia said. “We continue to closely monitor external factors, including geopolitical developments in the Middle East, inflation trends, interest rate movements and overall capital market sentiment.”

While a stock rights offering remains under consideration, Mr. Francia said ACEN is also looking at a broader mix of equity-raising options to ensure flexibility and optimal execution.

The Ayala-led energy platform earlier announced plans to raise as much as P30 billion through a stock rights offer, a mechanism that allows existing shareholders to subscribe to additional shares, typically at a discount.

However, Mr. Francia said the company is not rushing into a capital-raising activity.

“We’re in no great rush also because we didn’t grow as significantly last year, so it allowed us to stretch the available capital we have,” he said. “But certainly, within the year, we would like to have a firm view in terms of what is our capital strategy and get going with those decisions.”

ACEN has about 7 GW of attributable renewable energy capacity, including operational, under-construction and committed projects across markets such as the Philippines, Australia, Vietnam, India, Indonesia, Laos and the US.

Mr. Francia said the company remains on track to exceed 8 GW by end-2026, with more than 1 GW of capacity expected to enter construction across its regional portfolio.

To support its expansion pipeline, ACEN has earmarked more than P80 billion in capital expenditures this year for the development of major renewable energy projects.

Despite its growth ambitions, the company reported a 60% decline in consolidated net income to P3.8 billion, weighed by lower spot market electricity prices and operational challenges.

Shares of ACEN fell 1.99% to close at P2.95 each on the local bourse, reflecting cautious investor sentiment amid broader market and macroeconomic uncertainties.