Alternergy Holdings Corporation Financials Surge in Fiscal Year 2024

Renewable power pioneer Alternergy Holdings Corporation’s (ALTER) wrapped up its fiscal year 2024 on a positive note, twice in a row, amidst a growth momentum.

Financial Highlights: Operating assets drove income growth

ALTER today reports 239% increase in consolidated net income to P130 million for the year ended 30 June 2024, improving from P38 million in 2023. The robust performance is driven mainly by surge in revenues, increasing by 60% to P275 million, particularly from ALTER’s operating assets. The operations of the Palau Solar PV + Battery Energy Storage System Project (the “Palau Project”), which started commercial operations in January 2024, contributed significantly. The Palau Project posted P87.3 million in revenues for the first six (6) months of operations.

ALTER’s 12.5MWp Kirahon Solar Power Plant in Misamis Oriental continued its steady performance over the last nine (9) years, recording a 10% increase from 2023 in energy generation due to higher irradiation during the summer months. The Kirahon Solar Power Plant injected P188 million in revenues for 2024 from P173 million in 2023.

ALTER also saw a surge in other income in 2024 by 364% to Php 88 million from a loss of P33 million, attributed to the project cost recovery from the Palau Project and adept cash management, resulting in higher interest income.

The Company saw earnings before interest, taxes, depreciation and amortization (“EBITDA”) grow by 72% to P320 million from P180 million.

Overall, ALTER’s cash position stood healthier at P3.3 billion from P1.2 billion, up by 167%, boosted by net proceeds from the private placement of preferred shares and the Green Corporate Loan secured in May 2024.

ALTER’s consolidated assets also surged by 79% to P8.7 billion. With a healthy cash position, ALTER infused funding to its subsidiaries and affiliates to accelerate project development of the Tanay and Alabat Wind Power Projects, the Solana Solar Power Project and the Liberty Aqua-voltaic Solar Project as well as continued support of the ongoing construction of the 4.6 MW Dupinga and 7.6 MW Kiangan run-of-river hydro projects.

Meanwhile, ALTER’s consolidated equity also rose by 58% to P4.3 billion from the private placement of preferred shares, resulting to a manageable debt-to-equity ratio of 1.12x in 2024 despite the additional borrowings from the Green Corporate Loan, as compared to 0.79x in 2023.

“ALTER posted strong performance for the second time in a row after our public listing. Our current operating assets are contributing significant margins. We expect that once the ongoing construction of the five projects are completed by 2025, there will be a substantial boost in ALTER’s financial standing,” Gerry P. Magbanua, President of ALTER said.

Operating Highlights: ALTER’s accelerated growth with 5 Projects under Construction

For the fiscal year 2024, ALTER achieved significant milestones in its growth trajectory. “The development teams from our Triple Play Portfolio (solar, wind and hydro) did tremendous jobs of pushing the projects all the way to construction phase in just one year. Five (5) projects are now under construction with a combined capacity of 242 MW to be added to boost the country’s energy supply by end 2025,” Vicente S. Pérez Jr., chairman of ALTER said. “We are confident and committed to pushing forward the 500 MW by 2026 target as set,” Mr. Pérez said as he affirmed ALTER’s contribution to the government’s national goal of increasing RE capacity to 35% by 2030.

ALTER’s 5 projects under construction are: 128 MW Tanay Wind Power Project, 64 MW Alabat Wind Power Project, 28 MWp Solana Solar Power Project, 4.6 MW Dupinga ROR Project and 17.4 W Kiangan ROR Project.

“ALTER is one of the fastest growing renewable energy developers in the country. We had earlier set a goal of raising P20 billion in equity and debt capital within a five (5)-year period. Instead, we did it in only 15 months, which paved the way for the accelerated construction of our projects,” Mr. Magbanua said. “But this does not mean we paused. We will be building more projects, and this would require further capital raising.”

Between the three months of May 2024 to July 2024, ALTER raised total of P15.3 billion in financing. The Tanay Wind Power Project secured P8 billion in project financing from the Bank of the Philippine Islands (BPI) and Security Bank. The Alabat Wind Power Project secured P5.3 billion project finance facility from the Rizal Commercial Bank Corporation (RCBC). Another P2 billion in Green Corporate Loan was provided by BDO Unibank, Inc. (BDO). Add to this, the IPO in March 2023 raised a total of P1.62 billion in proceeds and another P1.45 billion in preferred perpetual shares in November 2023.