EDC earnings dip to P6.6 B on lower energy sales

MANILA, Philippines - Energy Development Corp. (EDC), the geothermal power firm company of the Lopez Group, reported a 20 percent decline in its net income last year on lower energy sales.

The company said its net income in 2013 went down 20 percent to P6.6 billion from P8.2 billion the previous year mainly on account of lower energy sales by its unit FG Hydro.

Consolidated revenues reached P25.7 billion last year, down 10 percent from P28.4 billion in 2012, as revenues from FG Hydro alone dropped by P2.2 billion.

“Furthermore, consolidated net income attributable to equity holders of the parent stood at P4.7 billion last year, down 46 percent compared with the P8.7 billion recorded in 2012,” EDC said.

In its report, EDC attributed the drop in revenues to a net loss of P2 billion for non-recurring items last year. This was in contrast to a P0.5 billion non-recurring gain for 2012.

“The non- recurring loss was primarily driven by realignment losses from the volatility in the peso- dollar exchange rate with the P1.3 billion foreign exchange loss in 2013 as compared to the P1.1 billion foreign exchange gain in 2012,” the company said.

The damage as a result of Super Typhoon Yolanda, which struck the country last November, also affected EDC’s revenues.

“Other major non-recurring item for 2013 includes material damage sustained due to Yolanda amounting to P0.6 billion,” EDC said.

The company owns the Unified Leyte Power Plants, parts of which were damaged by the typhoon.

Nevertheless, EDC executive vice president Ernesto Pantangco said the company’s financial position remained strong.

“The year 2013 posed unprecedented challenges to EDC. We, however, remained steadfast and have exerted efforts to expedite the energization of the Leyte plants. We remain on track to have the last of the Leyte plants energized by about June 2014,” he said.

EDC remains the largest producer of geothermal energy in the Philippines, accounting for 62 percent of the country’s total installed hydroelectric plant.

For this year, EDC is on track for the commissioning of the 40-megawatt Nasulo geothermal project as well as the 87-MW Burgos wind energy project by the third quarter and fourth quarter, respectively.