LOPEZ-LED Energy Development Corp. (EDC) reported a 24 percent growth in consolidated recurring net income in the first quarter driven by higher average prices from its key geothermal units and higher generation volumes of its Unified Leyte geothermal plants and Burgos wind farm.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, EDC said consolidated recurring net income attributable to equity holders of the parent grew to P3.25 billion in the first quarter from P2.63 billion in the same period last year.
Consolidated revenues increased by 6 percent to P9.61 billion from P9.10 billion in the same quarter last year.
EDC said the generation volumes of its Unified Leyte geothermal plants and Burgos wind farm in the first quarter increased 9.8 percent and 39.4 percent, respectively, from their year-ago levels.
“Our aggressive efforts to address our uncontracted capacity for Bacman and Nasulo last year and our extensive asset rehabilitation program in Leyte and for our other units are starting to pay off,” EDC President and Chief Operating Officer Richard Tantoco said.
EDC had previously disclosed that low spot market prices last year resulted in estimated revenue losses of about P1.40 billion during its 2016 fiscal year, and that it had embarked on a multi-billion peso project to reduce the unplanned outage factors of its older geothermal units.
“The retrofit of Tongonan’s two other units are on track to be completed by the third quarter,” Tantoco said, referring to EDC’s 112.5-meagwatt (MW) power plant in the Visayas.
“After the retrofit, it will be as good as new and we expect an increase of up to 10 percent in its total capacity,” he added.
EDC’s 150-MW Burgos wind farm, the largest in the country, saw total sales volume increase from 103 gigawatt-hours (GWh) to 144 GWh for the period, helping offset the reduced sales volume from its hydro unit from 256 GWh to 219 GWh.
As of the first three months of 2017, the company’s financial position remained strong, with a cash balance of P13.86 billion, a comfortable gearing level with consolidated net debt to equity ratio of 1.04 to 1, and consolidated net debt to EBITDA (earnings before interest, tax, depreciation, and amortization) ratio of 2.60 to 1.