LOPEZ-LED Energy Development Corp. (EDC) said on Thursday that recurring net income attributable (RNIA) to equity holders of the parent dropped 4 percent to P8.8 billion in 2017 against P9.72 billion in 2016.
In a disclosure, EDC attributed its lower recurring net income to the 6.5 magnitude earthquake that hit Leyte Island on July 2017, and Typhoon Urduja (international name: Kai-tak) that struck in December 2017, which resulted in an P800-million fall in revenues from its largest business unit.
EDC said it managed to restore 40 percent of its pre-earthquake Leyte capacity within 10 days last July, and the rest in the succeeding months.
“Our Leyte unit, which generated almost 45% of our revenues in 2016, was on track for a record year last year until it got struck by two major calamities”, EDC Chief Financial Officer Nestor Vasay said.
Consolidated revenues last year declined 3 percent to P33.3 billion from P34.2 billion.
EDC’s Bacman business unit, meanwhile, contributed an additional P900 million in revenues on higher contracted volume, negating the lower generation volume of its Palinpinon power plants.
The company’s Burgos wind farm, the largest in the Philippines, recorded a 16 percent rise in volume, its highest since its commissioning in 2014.
“We have been able to fully contract our Bacman and Nasulo power plants, thus reducing our exposure to the spot market,” Vasay said.
He added that EDC also bought back close to $90 million of its dollar bonds last year to help reduce its foreign exchange exposure.
For this year, EDC said it will continue to manage some of these key risks and work on optimizing their power plants and other efficiency programs.
EDC ended 2017 with cash balance of P11.7 billion against P10.6 billion in the previous year and a comfortable gearing level with consolidated debt to equity of 1.11 times and consolidated net debt to earnings before interest, tax, depreciation and amortization (EBITDA) of 2.79 times.
EDC, the country’s largest geothermal and wind energy company, is part of the First Gen Corp., which has the largest portfolio of power plants using clean and renewable technology in the Philippines.