SP New Energy Q2 profit: P183M (up 1,920% y/y)

SP New Energy [SPNEC 1.01, down 1.0%; 90% avgVol] [link] reported a Q2 net income of P182.7 million, up 1,920% y/y from its Q2/23 net loss of P9.8 million, and up 16% q/q from its Q1/24 net income of P157 million. SPNEC’s Q2 and H1 outperformance is due to the income it has earned from the assets injected into the company in 2023. SPNEC is now owned by a subsidiary of Meralco [MER 400.00, up 0.1%; 187% avgVol] and governed by Manny V. Pangilinan. SPNEC’s price is down 24% year-to-date, down 14% over the past year, but is trading 11% up off of its all-time low that it set two months ago.

MB bottom-line: It’s kind of crazy how SPNEC’s value has almost always been divorced from its commercial performance. When SPNEC first listed (back in the before times when it had a different name, business plan, and owner) it was a non-operational development company with a single project on its plate, and the sales pitch was “but just imagine when this project gets built!” Then when SPNEC pivoted to act as a vehicle to purchase ownership’s private solar power plant generation assets and future projects, the pitch was “but just imagine when all these projects are earning at the same time!” Then when ownership fumbled the ball on its flagship Terra Solar project, scared away its headline investor, got suspended for float problems, and got looted by MVP, the sales pitch was “but just imagine how this will go under competent management!” Then when we learned that things were more challenging than MVP thought and that he needed a massive injection of capital from foreign investors, the pitch was “but just imagine when this project gets all that fresh foreign capital!” Throughout all of that, SPNEC’s initial net losses didn’t really matter, and its current net income doesn’t really matter either compared to what it might be or could be if the Terra Solar dreams come true. One big development is that SPNEC was given a “green lane certificate” by the Bureau of Investments (BOI), which the BOI said it hopes will help SPNEC hit commercial operations of the first phase of the project by February 2026.

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