LOPEZ-LED Energy Development Corp. (EDC) disclosed on Wednesday its recurring net income attributable to equity holders of the parent rose 4 percent to P9.72 billion in 2016 due to improved performance and lower operating expenses of its Negros Island and First Gen Hydro business units.
EDC, the country’s largest geothermal and wind energy company, told the Philippine Stock Exchange (PSE) that its consolidated revenues last year reached P34.2 billion.
This was lower by P100 million compared to 2015 as depressed spot market prices for the Bacman and Nasulo geothermal plants’ uncontracted capacity off-set gains in sales volume firm-wide, the company said.
“The Bacman and Nasulo geothermal plants were amongst the most exposed to last year’s record-low electricity spot market prices. A reported 25 percent average drop in prices for these plants resulted to a revenue loss of over P1.4 billion full-year,” EDC Chief Financial Officer Nestor Vasay said in a statement.
“However, EDC has moved quickly to address and manage the downside from potentially low spot market prices,” Vasay added.
As of December 2016, EDC has lined up contracts that will cover 100 percent of Bacman’s capacity and almost 80 percent of Nasulo’s.
EDC’s 150-megawatt (MW) Burgos wind farm, the largest in the country, continued to build on its 2015 performance. Revenues increased by almost P400 million as annual wind energy generation increased by 60-gigawatthours (GWh) from 260 GWh in 2015 to 320 GWh in 2016.
EDC’s hydro unit also posted a 21 percent increase in annual revenues, primarily driven by higher sales volume.
Meanwhile, its Mindanao and Palinpinon geothermal power plants also recorded revenue increases from a combination of higher sales volume and average contract price.
“For this year, EDC will continue with its asset reliability program as it targets to finish the retrofit of the Tongonan power plant and the refurbishment of other generating units in Leyte. As we had been telling our investors, our focus for the past years has been embarking on initiatives to deliver ‘financial predictability’—some benefits of which we expect to see starting this year,” Vasay added.
EDC’s financial position remained strong with cash balance of P10.6 billion as of end-2016.
The company maintained a “comfortable gearing level with consolidated net debt to equity of 1.1 to 1.0 and consolidated net debt to earnings before interest, tax, depreciation and amortization (EBITDA) of 2.9 to 1.0,” the statement said.