The holiday ambiance intensifies as the curtain falls on 2023.
Yet, amidst the festive cheer, it seems there's no break for PT Barito Renewables Energy Tbk (BREN), which has truly managed to shake up the Indonesian capital market since its arrival in October.
In less than three months, the company has multiplied its share price by 10 times and briefly surpassed a market capitalization of Rp1.083 trillion, dethroned BBCA as the largest listed company on the Indonesia Stock Exchange.
Source: Bloomberg - December 8, 2023
With a palpable determination not to lose the momentum it gained, BREN strategically seized the spotlight once again.
Following the announcement of the Sidrap 1 acquisition, BREN made another announcement through its subsidiary, PT Barito Wind Energy, to acquire four other wind energy companies slated to be finalized before the end of the year.
Elevated as a leader in Indonesia's renewable sector, BREN seems to have the ability to effortlessly acquiring companies and forming partnerships.
This time, BREN has partnered with ACEN Investment HK Limited, a listed energy platform from the Ayala Group (Philippines), which has a capacity of ~4,000 MW from facilities in the Philippines, Australia, Vietnam, and India, with a renewable energy share of 98%, one of the highest in the region.
Source: ACEN
Through this collaboration, BREN has successfully acquired five companies: PT UPC Sidrap Bayu Energi (Sidrap 1), PT UPC Sidrap Bayu Energi Phase II (Sidrap 2), PT UPC Sukabumi Bayu Energi (Sukabumi), PT UPC Lombok Timur Bayu Energi (Lombok), and PT UPC Operation and Maintenance Indonesia (OMI).
In the agreement terms, Barito Wind Energy will own 51% of three development assets, while ACEN will own the remaining 49%. As for Sidrap 1 and OMI, BREN will have full control, holding 99.99%.
Currently, Sidrap 1 is actively generating power with a capacity of 75 MW, standing as the first and one of the largest wind power plants in Indonesia. Meanwhile, the other four companies are still in the process of development, holding a combined potential capacity of 320 MW.
With this acquisition, the potential capacity could reach 395 MW, an increase of 45% from the current capacity of 886 MW, surpassing our 2030 forecast. This move reaffirms BREN's commitment to promoting sustainable energy solutions and positions the company to access the vast wind energy potential in Indonesia.
BREN's Istalled Capacity (MW)
Source: BREN
This collaboration is undoubtedly aimed at the potential profitability in the future. If we assume an average selling price (ASP) of US$0.1 per kWh, our analysts, Andre, project that the wind power plant could contribute an additional US$170 million. These estimations, based on Andre's conservative assumptions, represent a substantial 28% increase in current sales.
Moreover, with an EBITDA margin assumption of 70%, the EBITDA could potentially reach US$119 million, reflecting a noteworthy 23% increase compared to the current EBITDA.
It's worth emphasizing that what sets BREN apart is its truly exceptional foresight and ambition that is not commonly observed in the market; there's nothing quite like it. The company defies comparison, standing as a true one-of-a-kind entity.
This is evident in ACEN's decision to collaborate, choosing BREN to marking its first venture outside the Philippines. As they aim to extend their footprint in wind energy across the Asia-Pacific region, BREN emerges as the sole entity deemed capable of being their esteemed partner in Indonesia.
As the formidable player in the Asia-Pacific renewable energy sector with a robust growth trajectory, BREN is well-positioned to harness enormous opportunities and lead the global effort toward a clean energy transition, earning it the title 'the king of renewable energy'.