EDC recurring net income down 10% YoY mainly due to Tongonan Plant outage

MANILA, Nov 11 (PNA) – Lopez-led Energy Development Corp. (EDC) has posted a lower recurring net income attributable to equity holders of the parent by 10 percent at Php 7.0 billion for the past three months compared to the Php 7.8 billion for the same period last year due mainly to the outage of the 37.5-megawatt (MW) Tongonan power plant.

In a statement Wednesday, EDC said the other drivers were higher operating expenses from typhoon resiliency works and the expiration of its tax holiday for the Pantabangan-Masiway hydroelectric complex.

Including non-recurring items, the renewable-energy company’s consolidated net income attributable to equity holders of the Parent amounted to Php 5.9 billion for the first three quarters of 2015.

It was lower by 43 percent to 2014’s Php 10.4 billion for the same period.

EDC explained that the decrease was due to “higher foreign exchange losses of Php 1.2 billion and the absence of any impairment reversals this year.”

Consolidated revenues, on the other hand, grew by 10 percent or Php 2.3 billion to Php 25.3 billion from Php 23 billion for the last three quarters of 2014.

The higher revenue was due to higher energy sales from the newly rehabilitated Bacman geothermal power plants (Php 1.2 billion), Nasulo geothermal power plant (Php 0.6 billion) and the Burgos wind farm (Php 1.3 billion).

EDC noted that the doubling of transmission line capacity in Ilocos will allow the wind farm to reach its full generating capacity.

“The completion of the uprated Laoag-San Esteban transmission line last September is timely given that we expect to generate close to 75 percent of our energy sales from the Burgos Wind Project during the next 6 months,” EDC president and chief operating officer (COO) Richard Tantoco said.

He also said the company will continue to invest to make their power plants typhoon resilient.

“Going forward, we will continue to proactively invest in both typhoon resiliency and equipment upgrades to increase output, improve reliability and boost the energy and cash generation of our power plants,” Tantoco added.

Its cash balance, however, stood at Php 15.5 billion with a consolidated net debt to equity of 1.21 to 1.

EDC’s consolidated net debt to EBITDA, meanwhile, was at 3.04 to 1. (PNA)