EDC posts 28% income hike

MANILA, Philippines - Energy Development Corp. (EDC) reported a consolidated net income of P5.4 billion in the first half of the year, up 28 percent from P4.2 billion a year ago.

Officials of the Lopez led geothermal firm attributed the increase to higher energy sales during the period with the partial operation of the Bacon-Manito power plants, which the company rehabilitated.

In a report, EDC said consolidated revenues rose to P15.2 billion, up by P1.8 billion or 13 percent, from P13.4 billion recorded during the same period in 2013.

“This was primarily driven by the P1.5-billion revenue contribution from the BacMan power plant,” EDC president Richard Tantoco said.

He said the company expects more revenues from the BacMan plants when Units 1 and 3 return to service.

“We’re finally reaping some of the benefits of our revised rehab strategy for BacMan. The plants will contribute to our second half revenues starting end-August when Units 1 and 3 return to service.  The installation of brand-new Toshiba steam turbine rotors has not been affected by Typhoon Glenda and remains on schedule for the fourth quarter this year and first quarter next year,” he said.

The BacMan plant is located in the towns of Bacon, Sorsogon and Manito, Albay. EDC has been rehabilitating its units since last year.

The Mindanao and Palinpinon power plants also reported a P300 million and P200 million revenue increase, respectively, on the back of higher energy sales for both power plants.

On the other hand, EDC said that FG Hydro Corp.’s revenues declined by P200 million due to the mandated re-computation of electricity spot prices by the Energy Regulatory Commission (ERC) for November and December 2013 billings which took effect in the first quarter this year.

Moving forward, Tantoco said the company expects the rosy first half performance to continue in the second half of the year.

“We expect the growth of our top-line to be sustained into the second half of the year as we commence commercial operations for our Nasulo geothermal,” he said.

As of end-June, EDC said it maintained a comfortable gearing level with consolidated net debt to equity of 1.21 to 1 and a consolidated net debt to earnings before income tax depreciation and amortization (EBITDA) of 2.91:1.

EDC, which was privatized in 2007, remains the countrys biggest geothermal energy producer, accounting for 62 percent of the country’s total installed geothermal capacity.