Energy Development CorporationEnergy Development Corporation (EDC) reported that consolidated revenues for the first three months of 2018 declined by 15% at P8.18 billion from P9.61 billion during the same period in 2017. Its consolidated recurring net income attributable to equity holders of the parent for the period stood at P1.81 billion, down 44% from the P3.25 billion posted the previous year.
“Our results for the first quarter were dominated by the impact of typhoon Urduja that hit Leyte island, site of our biggest business unit, in December,” said EDC chief financial officer Nestor Vasay. “Generation volume was lower by about 40% in Leyte compared to 1Q of 2017, and we continued to incur recovery expenses. However, we are now at 90% of the return-to-service activities in Leyte, and are targeting to complete our program by the third quarter.
“Though our financial predictability initiatives took a step back due to the two natural calamities that hit us last year, our stable financial footing allowed us to continue making the necessary investments in plant resiliency, operational reliability and efficiency. We are confident that our activities fleet-wide to increase our operational efficiency and to mitigate our key risks—particularly in contracting our capacity—will help us offset some of the foregone revenues from the impact of last year’s earthquake and typhoon Urduja,” Vasay noted.
Meanwhile, EDC’s Bacman Business Unit recorded a 10% increase in its revenues (P0.96 billion vs. P0.87 billion), largely driven by its efforts to fully contract its capacity. Lower operating expenses were also recorded in some of EDC’s business units, while its wind farm continued to generally track its record performance last year.
Inclusive of nonrecurring items, consolidated net income attributable to equity holders of the parent stood at P1.34 billion, lower than the P3.09 billion in the first quarter of 2017.
The decline was primarily driven by lower revenues, partially offset by higher insurance proceeds and lower interest expense this period.
Though net income for the first three months of 2018 was down 54% to P1.50 billion from P3.26 billion in 2017, the company’s financial position remained strong with cash balance of P14.27 billion.
It maintained a comfortable gearing level with consolidated debt to equity of 1.08 times to 1 and consolidated net debt to EBITDA of 3.01 times to 1.