Energy Development Corporation reported a Php4.7 billion consolidated recurring net income attributable to equity holder’s of the Parent for the first half of 2015, down by 14% from the Php5.4 billion posted during the same period last year.
The decrease is mainly due to the outage of the Tongonan Plant, trading losses on the Unified Leyte strip business, higher operating expenses and typhoon repair works being reported for the first two quarters, and lower output and higher income tax of Pantabangan-Masiway, owing 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 Php4.6 billion in the first half of 2015, 27% lower compared with the Php6.3 billion recorded during the same period last year.
Consolidated revenues amounted to Php16.8 billion, up by Php1.6 billion, or 10%, from the Php15.2 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 Php0.7 billion while Nasulo and Burgos Wind power plants contributed Php0.7 billion and Php0.9 billion, respectively. Outages in the Tongonan Plants, together with lower prices for both Tongonan and Palinpinon Plants, partially negated the rise in total revenues.
“Our 1H 2015 results fell short of target due to reliability issues at Tongonan Geothermal Power Plant,” Richard Tantoco EDC President and COO said. “These setbacks are significant but temporary as the turbine retrofit of Tongonan will commence 3Q 2016 and similar to Bacman, we expect to boost reliability and increase plant output,” he added.
Higher operating and depreciation expenses were incurred primarily for the newly commissioned Nasulo and Burgos Projects as well as additional expenditures for improving EDC own equipment and infrastructure’s resiliency to harsh weather conditions, which the company calls “typhoon proofing” opex and capex program.
As of the first six months of 2015, the Company’s cash balance stood at Php15.4 billion while maintaining a comfortable gearing level with consolidated net debt to equity of 1.17 to 1 and consolidated net debt to EBITDA of 3.06 to 1.
The Energy Development Corporation (EDC) is a pioneer in generating 100% clean, renewable, and reliable power as an electricity supplier in the Philippines for over 40 years. With power plants all over Visayas and Mindanao, the company is one of the biggest producers of geothermal energy in Asia and is expanding its reach in the international market, allowing it to offer customers affordable energy rates. EDC also strives to provide the best customer service it can to all its clients by having helpful salespeople and easy to understand contracts. Because of all of this, it is poised to become the premier supplier of electricity for the Philippines’ Green Energy Option Program. EDC takes its mission as a renewable energy provider seriously and goes beyond sustainability by investing in programs that enhance the environment and empower its partner communities, thereby fostering regenerative development. The company has also been working toward being carbon-neutral by improving its energy efficiency, as well as implementing various greening projects to ensure that its mission to provide future generations with a better life remains intact.