Energy Development Corporation LogoEnergy Development Corporation (EDC) reported a consolidated recurring net income attributable to equity holders of the parent of P3.25 billion for the first quarter of 2017. This is 24% higher than the P2.63 billion that was posted during the same period last year.

Consolidated revenues also increased by 6% to P9.61 billion in 1Q 2017. The improved performance was primarily driven by higher average prices from its key geothermal units and by the increase in generation volumes of its Unified Leyte geothermal plants and Burgos wind farm (9.8% and 39.4%, respectively).

“The results for this quarter show that we are gaining traction on our goal to deliver ‘financial predictability’ to our investors. Our aggressive efforts to address our uncontracted capacity for Bacman and Nasulo last year and our extensive asset rehabilitation program in Leyte and for our other units are starting to pay off,” EDC president and chief operating officer Richard Tantoco stated.

EDC had previously disclosed that low spot market prices last year resulted in estimated revenue losses of about P1.40 billion during its 2016 fiscal year, and that it had embarked on a multibillion-peso project to reduce the unplanned outage factors of its older geothermal units.

“The retrofit of Tongonan’s two other units are on track to be completed by the third quarter,” Tantoco said, referring to EDC’s 112.5-megawatt power plant in the Visayas region.

“After the retrofit, it will be as good as new and we expect an increase of up to 10% in its total capacity.”

As of the first three months of 2017, the company’s financial position remained strong with cash balance of P13.86 billion.