Alternergy Q2 profit: P82M (up 447% y/y)

Alternergy [ALTER 1.05, up 1.0%] [link] posted a Q2 net income attributable of P81.5 million, up 447% y/y from its Q2/24 net income attributable of P14.9 million, and up 4,389% q/q from its Q1/25 net loss attributable of P1.9 million. On a H1 basis, ALTER’s net income attributable was P79.6 million, up 116% y/y. ALTER’s management team said that its consolidated H1 income was down 27% y/y due to “lower share in net earning of associates [...] caused by the lower wind speeds at the Pililla Wind Project in 2024.” Revenues from the sale of electricity were up 81% to P181.2 million due to the new contributions of the Palau Solar and BESS Project. ALTER also noted a 70%  increase in “Other charges - net” due to a one-time write-down for “the relinquishment of the Calavite offshore wind service contract which was proven to be technically not feasible for further project development.”

MB bottom-line: ALTER is a little bit like SP New Energy [SPNEC 1.16 unch] in its first year. Remember when SPNEC’s business changed so rapidly that it made comparisons to previous quarters very difficult? That’s what I see here. Not the reckless like-it-or-leave-it change that SPNEC forced upon its shareholders, though, but something more purposeful and targeted. Digging into the project details a bit, the Calavite offshore thing is old news -- that’s something that we’ve known about for over a year now -- but I still haven’t seen a good discussion of the factors that led to the project getting canned. All the writeups I’ve seen refer to the “several technical issues” that were discovered and the constraints provided by “the available technical innovations and market conditions”, but I’ve never seen these spelled out. ALTER isn’t the only company chasing offshore wind. Established heavy-hitters like Aboitiz Power [AP 42.30, down 4.9%], ACEN [ACEN 3.35, down 2.9%], and PetroEnergy [PERC 3.69, up 5.1%] all have offshore wind in their development pipelines, as do smaller upstarts like NexGen Energy [XG 2.37, down 1.3%]. I’ve been outspoken in my analysis of offshore plans, partially because I know these to be more difficult to execute than onshore plans. That’s why I’d love to get a little more insight into ALTER’s feasibility study here. 

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