Energy Development CorporationEnergy Development Corporation (EDC) posted consolidated revenues of P34.2 billion and recurring net income attributable (RNIA) to equity holders of the parent of P9.2 billion for 2016.
RNIA posted a 4% year-on-year increase on top of improved performance and lower operating expenses of the Negros Island and First Gen Hydro business units.
Revenues recorded a P0.1billion marginal decrease as compared to 2015, as depressed spot market prices for the Bacman and Nasulo geothermal plants’ uncontracted capacity offset gains in sales volume firm-wide.
“The Bacman and Nasulo geothermal plants were amongst the most exposed to last year’s record-low electricity spot market prices. A reported 25% average drop in prices for these plants resulted in a revenue loss of over P1.4 billion full-year,” EDC chief financial officer Nestor Vasay stated.
“However, EDC has moved quickly to address and manage the downside from potentially low spot market prices,” he added.
As of December 2016, EDC has lined up contracts that will cover 100% of Bacman’s capacity and almost 80% of Nasulo’s.
EDC’s 150-megawatt Burgos wind farm continued to build on its 2015 performance.
Revenue increased by almost P0.40 billion as annual wind energy generation increased by 60 gigawatt hours (GWh) from 260 GWh to 320 GWh in 2015 and 2016, respectively.
EDC’s hydro unit posted a 21% increase in annual revenues, primarily driven by higher sales volume, while the Mindanao and Palinpinon geothermal power plants also recorded revenue increases from a combination of higher sales volume and average contract price.