Energy Development CorporationEnergy Development Corporation (EDC) posted consolidated revenues of P33.3 billion and recurring net income attributable (RNIA) to equity holders of the parent of P8.8 billion for 2017.
Revenues and RNIA dropped by 3% and 4%, respectively, due to the 6.5-magnitude earthquake that hit Leyte Island in July 2017 and typhoon Urduja that struck in December 2017.
Although the company was able to restore 40% of its preearthquake Leyte capacity within 10 days last July, and the rest in the succeeding months, it still saw revenues from its largest business unit fall by P0.8 billion.
“Our Leyte unit, which generated almost 45% of our revenues in 2016, was on track for a record year last year until it got struck by two major calamities,” EDC chief financial officer Nestor Vasay said. “Despite the initial shock from the earthquake last July and from Urduja last December, our team worked hard to successfully restore much-needed electricity to our countrymen in the Visayas region.”
Meanwhile, EDC’s Bacman business unit delivered an additional P0.9 billion in revenues to negate the lower generation volume of its Palinpinon power plants. Its Burgos wind farm also built on its strong 2016 performance to post its highest volume (16% higher in 2017) since it was commissioned in 2014.
“We have been able to fully contract our Bacman and Nasulo power plants, thus reducing our exposure to the spot market. We also bought back close to $90 million of our dollar bonds last year to help reduce our foreign exchange exposure,” said Vasay.
“For 2018, we will continue to manage some of these key risks, and will continue to work on our power plant optimization and other efficiency programs,” he added.