LOPEZ-LED Energy Development Corp. (EDC) announced on Thursday that its consolidated revenues topped P34.4 billion in 2015, up by 11 percent from the previous year driven by higher energy sales.
However, EDC reported a 4.0 percent drop in consolidated recurring net income attributable to equity holders of the parent of P8.8 billion from the P9.2 billion posted in the previous year, due to higher operating expenditures.
In a disclosure to the Philippine Stock Exchange (PSE), EDC said that the higher energy sales came from its Burgos wind power plant at P2.2 billion while Bacman and Nasulo contributed P1.2 billion and P600 million, respectively.
“Fiscal year 2015 revenues fell short of target, primarily due to reliability issues at the Tongonan Geothermal Plant and the temporary curtailment of Burgos Wind Project early in the year due to transmission constraints,” EDC president and chief operating officer Richard Tantoco said.
“We look forward to start the full rehab and retrofit of the Tongonan units on October of this year with the new turbine rotors from Mitsubishi improving efficiency and increasing output,” Tantoco added.
“Company results were generally in line with our full year expectation that expenditures would pick up coming into the end of the year,” Tantoco added.
Higher operating and depreciation expenses were incurred primarily for assets reporting their first full year of operations in 2015.
In addition, EDC incurred increased power plant and pipeline maintenance expenditures for both the Leyte and Palinpinon projects. The company also invested in a fleet-wide typhoon proofing project to make its facilities more resilient against severe weather.
Inclusive of non-recurring items, consolidated net income attributable to equity holders of the parent stood at P7.6 billion, 35 percent lower than the P11.7 billion recorded in 2014.
The company said the decrease was primarily driven by the absence in 2015 of a P2.1 billion impairment reversal recorded in 2014 for the Northern Negros power plant and higher foreign exchange losses of P1.3 billion in 2015 brought about by the depreciation of the peso against the US dollar.
The company’s financial position remained strong with a cash balance of P17.6 billion. It maintained a comfortable gearing level with consolidated net debt to equity ratio of 1.20 to 1 and consolidated net debt to EBITDA (earnings before interest, tax, depreciation and amortization) ratio of 3.05 to 1.