AC Energy to continue assessing value of Phinma Energy assets it bought

By Lenie Lectura – March 18, 2019
from Business Mirror

AC Energy Inc. said it would continue to assess the renewable energy (RE) and gas projects Phinma Energy Corp. (PHEN) following the signing of an investment agreement involving the former’s purchase of 68.46 percent of the del Rosario-led firm.

Though there are no immediate and firm plans on what to do with the energy assets of Phinma, AC Energy President Eric Francia said “we will definitely consider them.”

“They have a lot of RE and some gas. We will look at all of their RE such as solar and wind. We will also take into consideration their gas assets. The top priority for us is solar and wind.  We haven’t decided, but those are still in consideration,” Francia said.

The consideration will likely depend on the company’s direction moving forward. Francia added RE plays a major role in AC Energy’s goal to develop 5 gigawatts of attributable capacity and generate at least 50 percent of energy from renewables by 2025.

AC Energy is a fast-growing energy company with more than $1 billion of invested and committed equity in renewable and thermal energy.

“My view is that there’s room for us to develop RE in the next five to 10 years because it’s more competitive. Because of Renewable Portfolio Standards, there will be sole mechanisms to promote RE. So, in this context, we will continue to take a look at solar and the other RE businesses of Phinma,” Francia said.

PHEN has an attributable generation capacity of 472 megawatts and is the third-largest retail electricity supplier, serving 378 MW of customer demand.

It holds 100-percent interests in Phinma Power Generation Corp., Phinma Renewable Energy Corp.,  CIP II Power Corp., One Subic Power Generation Corp. and One Subic Oil Distribution Corp.

It also holds 60-percent holdings in Phinma Solar Corp.; 50.74 percent in Phinma Petroleum and Geotherma Inc.; 30.65 percent in Palawan Exploration and Production Corp.; 45 percent in South Luzon Thermal Energy Corp.; and 25 percent in Maibarara Geothermal Inc.

Francia said Phinma Energy platform has significant operating and developmental RE assets, and its large diesel capacity will complement the scaling-up of AC Energy’s renewable projects.

The deal between AC Energy and Phinma Energy is worth P6.052 billion.  Francia could not say when AC Energy will reach a decision.

“There is no hard timeline,” he said.  Phinma President and CEO Ramon del Rosario Jr. said the sale allows Phinma to focus “on our rapidly expanding investments and operations in the education and construction materials sectors.

Francia earlier said “the upstream oil and gas business is not our core,” though AC Energy “will study what to do with those after the deal closes.”

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