Alternergy eyes P15 billion for projects

ALTERNERGY Holdings Corp. plans to allocate P15 billion to fund the capital requirements for its projects, which have a combined capacity of at least 190 megawatts (MW).

“In terms of amount, 191 MW would probably require around P15 billion of capex (capital expenditure),” Alternergy President Gerry P. Magbanua said during a press briefing on Thursday.

Around 75% of the capital requirements will be sourced from debt, while 25% will come from equity. The funding will be used to cover the additional capacity for two projects in the predevelopment stage and one project scheduled for completion by 2026.

“We continue to look at opportunities to raise money or raise capital in anticipation of also building more capacities on the ground,” Mr. Magbanua said.

“Our DNA is that of a developer, so we continue to explore opportunities. But hand in hand with that opportunity, we need to have funding. So that is why we’re also very active in looking at opportunities to raise capital for the group,” he said.

The company previously announced that it had raised P20 billion in capital since the initial public offering in March last year to fund the projects.

The allocated funds will be used for four projects scheduled for completion by 2025.

“We are confident and committed to pushing forward the 500 MW by 2026 target as set,” Mr. Magbanua said.

For the fiscal year 2024, the company reported a consolidated net income to P130 million, almost four times higher than the P38 million last year.

The company attributed the increase to the surge in revenues, which grew by 60% to P275 million, particularly from its operating assets.

“Alternergy posted strong performance for the second time in a row after our public listing. Our current operating assets are contributing significant margins,” Mr. Magbanua said.

“We expect that once the ongoing construction of the five projects is completed by 2025, there will be a substantial boost in Alternergy’s financial standing,” he added.

Alternergy aims to develop up to 500 MW of additional wind, solar, and run of river hydro projects.

At the local bourse on Thursday, shares in the company climbed by 9.33% to close at P0.82 each. — Sheldeen Joy Talavera