Lopez-led Energy Development Corp. (EDC) has reported a 14 percent decrease in its consolidated recurring net income attributable to equity holders of the parent for the first half of 2015.
In a disclosure to the Philippine Stock Exchange (PSE), EDC said its consolidated recurring net income for the first half of 2015 was pegged at P4.7 billion from the P5.4 billion posted during the same period last year.
EDC attributed the decrease to the outages of its 112.5-megawatt (MW) Tongonan geothermal power plant in Kananga.
Outages in the Tongonan Plants, together with lower prices for both Tongonan and Palinpinon Plants, partially negated the rise in total revenues.
EDC President and COO Richard Tantoco said the first half of 2015 results fell short of target due to reliability issues at Tongonan Geothermal Power Plant.
“These setbacks are significant but temporary as the turbine retrofit of Tongonan will commence in the third quarter of 2016 and similar to Bacman, we expect to boost reliability and increase plant output,” he added.
The decrease was also driven by the trading losses on the Unified Leyte strip business, higher operating expenses, typhoon repair works being reported for the first two quarters, as well as lower output and higher income tax of its 132MW Pantabangan-Masiway hydro power plant, due to the end of its income tax holiday last April 2014.
Inclusive of non-recurring items, consolidated net income attributable to equity holders of the Parent stood at P4.6 billion in the first half of 2015, 27 percent lower than the P6.3 billion recorded during the same period last year.
Consolidated revenues amounted to P16.8 billion, up by P1.6 billion, or 10 percent, from the P15.2 billion recorded during the same period in 2014.
The improvement was largely due to higher energy sales from the newly rehabilitated Bacman power plants and the newly commissioned Nasulo Geothermal and Burgos Wind power plants—commissioned only during the latter part of 2014.
Revenues from Bacman’s Unit 1, 2 and 3 power plants increased by P0.7 billion while Nasulo and Burgos Wind power plants contributed P0.7 billion and P0.9 billion, respectively.
Higher operating and depreciation expenses were incurred primarily for the newly commissioned Nasulo and Burgos projects as well as additional expenditures for improving EDC’s own equipment and infrastructure’s resiliency to harsh weather conditions, which the company calls “typhoon proofing” opex and capex program.
Through the first six months of 2015, the company’s cash balance stood at P15.4 billion.