LOPEZ-LED Energy Development Corp. (EDC) posted a consolidated net income of P6.2 billion in the first nine months of the year, down 19.4 percent from last year, on lower revenue contributions from subsidiaries Green Core Geothermal, Inc. (GCGI) and FG Hydro Power Corp. (FG Hydro).
Consolidated net income attributable to equity holders of the parent firm stood at P5.96 billion from P7.4 billion in 2016, EDC said in a disclosure.
Recurring net income attributable to equity holders of the parent dropped 6.5 percent to P6.6 billion from P7 billion a year ago as a result of the impact of the magnitude 6.5 earthquake that struck Leyte in July.
Meanwhile, consolidated revenues fell 3.1 percent year-on-year to P24.6 billion, while recurring net income generated dropped 7.6 percent to P6.8 billion due to the decline in revenues.
Earnings before interest, tax, depreciation and amortization (EBITDA) slipped to P14.9 billion from P15.3 billion in 2016.
Revenue from the sale of electricity hit P24.6 billion in the nine-month period, down 3.1 percent from last year.
EDC said the revenue decrease was primarily due to lower revenue contribution from units GCGI and FG Hydro, partly offset by the increase in revenue contribution of Bac-Man Geothermal Inc. (BGI)’s power generating units.
CGGI, FG Hydro, and BGI contributed P1.16 billion, P500.5 million, and P831.1 million, respectively.
Despite the lower profit, EDC said its financial position remained strong with a cash balance of P13.6 billion. It also maintained a comfortable gearing level with consolidated debt to equity of 1.19 times to 1 and consolidated net debt to EBITDA of 2.67 times to 1.
EDC Chief Financial Officer Nestor Vasay said the company had expected the effect of the Leyte quake on their third quarter results.
“At the time of the earthquake, the EDC’s Leyte business unit, the largest among the company’s operating units, was generating at almost 540 [megawatts]MW of energy,” EDC said. The company has since brought back to service all of its major units, save for two 60MW units in its Mahanagdong geothermal plant.
“Our other business units have also been helping in cushioning the financial impact of the earthquake by way of cutting back on their forecasted OPEX [operating expense]for the rest of the year,” Vasay added.
EDC is primarily engaged in the business of exploring, developing, operating, and utilizing geothermal energy and other indigenous renewable energy sources for electricity generation.
Shares of EDC slipped 0.70 percent to close at P5.71 on Wednesday.