Energy Development CorporationEnergy Development Corporation (EDC) reported a consolidated recurring net income attributable (RNIA) to equity holders of the parent of P6.6 billion for the first nine months of 2017. This is 6.5% lower compared to the P7.0 billion RNIA that was recorded during the same period last year as the company felt the impact of the magnitude 6.5 earthquake that hit Leyte island on July 6.
In terms of consolidated revenues, EDC posted P24.6 billion, a slight 3.1% dip from the P25.4-billion revenue figure that the company recorded during the same nine-month period in 2016. Its Bacman geothermal unit partly offset the reduced revenues from Leyte, with its topline figure increasing by P0.5 billion as it likewise endeavored to drastically increase the amount of its contracted capacity, thereby reducing its reliance on the spot market.
Inclusive of nonrecurring items, consolidated net income attribut able to equity holders of the parent stood at P6.0 billion, lower than the P7.4 billion in 2016.
The decline was primarily driven by lower reported revenues (P0.8 billion) combined with lower proceeds from insurance claims (P1.3 billion) and premium paid for the early redemption of the company’s US dollar-denominated bonds (P0.4 billion). These were partially offset by lower FX losses (P0.4 billion) and financing costs (P0.3 billion) being reported for the period.
“A recurring initiative the past couple of years has been our focus to deliver financial predictability to our shareholders. Notwithstanding the impact of the earthquake, we’ve seen our efforts to retrofit and improve the reliability of our older assets, increase the proportion of our contracted capacity, and reduce our opex and financing costs help us start delivering on this target,” EDC chief financial officer Nestor Vasay said.