EDC reports increase of revenues due to higher output of Leyte geothermal plants
Higher energy sales of its Unified Leyte geothermal power plants and reduction in Bacman geothermal plant's exposure to electricity market have helped EDC to increase consolidated revenues for the first half of this year.
Reporting on its half year results, geothermal power producer Energy Development Corp. announces consolidated recurring net income attributable to equity holders of the parent company increased 11 percent in the first half to P5.2 billion ($111 million) from P4.7 billion ($91 million) it booked in the same period last year.
EDC said in a disclosure to the stock exchange consolidated revenues rose 4 percent in January to June to P17.7 billion ($346 million) from P17 billion ($332 million) a year ago.
The company attributed the increase in revenues to higher energy sales of Unified Leyte plants and the reduction in the Bacman plant’s exposure to the electricity market.
“First-half 2017 results confirm progress EDC has made in boosting cash generation and in delivering financial predictability to investors by addressing the uncontracted portion of its Bacman power plants and by undertaking an extensive asset reliability program for the Leyte Power Plants,” EDC chief financial officer Nestor Vasay said.
Inclusive of non-recurring items, consolidated net income attributable to equity holders of the parent declined 6 percent to P4.6 billion from P4.9 billion in the same period last year.
EDC said the decline was driven by higher operating expense, forex losses on loans and loss from the early redemption of a portion of the company’s US dollar denominated bonds, partly offset by higher revenues mainly from Unified Leyte and the Bacman power plants.
“Earnings growth was strong during the first half of the year, but will likely become moderate for the second half of 2017 following the magnitude 6.5 earthquake that struck the island of Leyte last July 6,” Vasay said.
He said EDC remained steadfast and exerted efforts to expedite the return to service of the generating capacity of the Leyte plants back to its pre-earthquake levels.
The company’s financial position remained strong with cash balance of P10.9 billion ($212 million).
EDC, an affiliate of First Gen Corp. is a part of the Lopez Group of Companies. It is the largest producer of geothermal energy and one of the leading renewable energy companies in the country.
Source: The Standard