Energy Development CorporationEnergy Development Corporation (EDC) reported a consolidated recurring net income attributable to equity holders of the parent of P5.2 billion for the first half of 2017, or 11% higher than the P4.7 billion posted during the same period last year.
Consolidated revenues reached P17.7 billion in 1H2017, up by P0.7 billion or 4%, from the P17.0 billion in 1H2016. The increase was driven primarily by higher energy sales volumes booked by the Unified Leyte Plants and the reduction in the Bacman Plants’ exposure to the electricity markets following the increased proportion of contracted energy sales.
“1H2017 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 stated.
Inclusive of nonrecurring items, consolidated net income attributable to equity holders of the parent stood at P4.6 billion, 6% lower than the P4.9 billion in 2016. The decline was primarily driven by higher operating expense, forex losses on loans and loss fom 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. We, however, remain steadfast and have exerted efforts to expedite the return to service of the generating capacity of the Leyte plants back to its pre-earthquake levels,” Vasay said.