LOPEZ-LED Energy Development Corp. (EDC) reported lower earnings in the first nine months of the year due to the lower output of its Tongonan plant in Leyte and higher operating expenses.
EDC said its consolidated recurring net income attributable to equity holders of the parent fell 10 percent in the first nine months of the year to P7 billion from P7.8 billion during the same period last year.
In a disclosure to the Philippine Stock Exchange (PSE), EDC said the decrease was mainly due to the lower output of the Tongonan plant resulting from the unplanned outage of a 37.5- megawatt (MW) unit early in 2015, as well as higher operating expenses for typhoon resiliency works.
The commencement of income tax payments of the hydro unit Pantabangan Masiway following the expiration of its income tax holiday last April 2014 also increased operating expenses, it said.
Inclusive of non-recurring items, consolidated net income attributable to equity holders of the parent stood at P5.9 billion during the first three quarters of 2015, which is 43 percent lower than the P10.4 billion recorded during the same period of last year.
EDC said the decrease was primarily driven by higher foreign exchange losses of P1.2 billion versus P200 million last year and the absence of any impairment reversals this year.
Last year, the company recognized a P2.0-billion impairment reversal on its Northern Negros power plant.
Meanwhile, consolidated revenues amounted to P25.3 billion, up by P2.3 billion or 10 percent, from the P23.0 billion recorded during the same period in 2014.
EDC said the increase was largely on account of higher energy sales coming from the newly rehabilitated Bacman power plants which contributed P1.2 billion to the top line, along with the recently commissioned Nasulo power plant which contributed an additional P600 million.
The newly commissioned Burgos Wind power plant also contributed P1.3 billion in fresh revenues, and with the doubling of transmission line capacity in Ilocos, will now be able to sell up to its full generating capacity.
EDC president and chief operating officer Richard Tantoco said the completion of the up-rated Laoag-San Esteban transmission line last September was timely given that they expect to generate close to 75 percent of their energy sales from the Burgos Wind Project during the next six months.
“Going forward, we will continue to proactively invest in both typhoon resiliency and equipment upgrades to increase output, improve reliability and boost the energy and cash generation of our power plants,” Tantoco said.
As of the first three quarters of 2015, the company’s cash balance stood at P15.5 billion with consolidated net debt to equity ratio of 1.21 to 1, and consolidated net debt to EBITDA ratio of 3.04 to 1.