Energy Development Corporation (EDC) reported a consolidated recurring net income attributable to equity holders of the parent of P2.63 billion for the first quarter of 2016, or 7% higher than the P2.46B posted during the same period last year.
Consolidated revenues reached P9.10B in 1Q 2016, up by P0.60B or 7%, from the P8.50B in 1Q 2015.
Increased core income and revenues resulted primarily from higher energy sales being reported by EDC’s Burgos Wind Project. For the first quarter of 2016, Burgos Wind’s core income increased by P0.52B following a P0.67B increase in revenues.
Revenue results for the balance of the portfolio were partially muted as some of the gains in sales volumes have been negated by lower spot prices. The increased revenues from plants with largely contracted capacities—Burgos Wind, Unified Leyte and Palinpinon/Tongonan—were partly offset by lower reported revenues from plant capacities exposed to the spot markets, as in the Bacman and Nasulo power plants.
“The effects of low electricity spot price, while significant, are being addressed by the company,” Richard Tantoco, EDC president and COO, said.
“If you will recall, we started deferring CAPEX-intensive growth projects late in 2015 to instead refocus investments on the existing asset base to boost overall output, reliability and cash generation. We are already seeing some of the gains come in,” Tantoco added.
Inclusive of nonrecurring items, consolidated net income attributable to equity holders of the parent stood at P3.25B, 31% higher than the P2.49B in 2015. The increase was primarily driven by higher revenues of about P0.60B mainly from Burgos Wind and higher forex gains amounting to P0.48B following the realignment of the US dollar-denominated loans, partly offset by higher plant operating expenses.
