THE country’s leading geothermal and wind energy provider, Lopez-led Energy Development Corp. (EDC), reported a consolidated recurring net income attributable to equity holders of the parent of P4.68 billion for the first half of 2016, slightly higher than the P4.66 billion it posted in the same period last year.
In a disclosure to the Philippine Stock Exchange (PSE) on Thursday, EDC said that its consolidated revenues improved to P171 billion in the first half of 2016, up by P230 million from the P16.78 billion reported in the first half of 2015.
The company said major contributors to the improved revenues were driven by plants with largely contracted capacities.
These include Tongonan/Palinpinon, which posted a revenue increase of P420 million on account of lower unplanned outages; the Pantabangan-Masiway, which posted an increase of P330 million due to higher water levels in the dam; and the Burgos wind and solar project, which posted an increase of P160 million following the resolution of its curtailment issues after the completion of the Laoag-San Esteban transmission line.
On the other hand, its power plants that were exposed to the Wholesale Electricity Spot Market (WESM) such as Bacman and Nasulo recorded lower revenues despite an increase in sales volume. EDC reported a decrease of P540 million in Bacman’s revenues and a decrease of P90 million in Nasulo’s revenues.
Operating expenses for the period dropped by P710 million with the deferral of non-critical projects and the curtailment of business related expenses, EDC said. It said this was exclusive of the increase in depreciation and amortization expense amounting to P260 million
“In spite of the low WESM price environment, we remain committed to address plant
reliability issues fleet-wide,” said Nestor Vasay, EDC’s senior vice president and chief finance officer.
“Investing in the company’s existing asset base is expected to boost cash generation, with the equipment’s improved reliability and output,” Vasay added.
Inclusive of non-recurring items, consolidated net income attributable to equity holders of the parent stood at P4.91 billion, 7 percent higher than the P4.61 billion reported during the same period in 2015. The increase was primarily driven by higher revenues from power projects and lower operating expenses, the company said.
As of the first half of 2016, the company’s financial position remained strong with cash balance of P15.58 billion. It maintained a comfortable gearing level with consolidated net debt to equity of 1.15 to 1 and consolidated net debt to EBITDA [earnings before interest, taxes, depreciation, and amortization]of 2.89 to 1.