EDC financial health remains strong

MANILA, Philippines — Lopez-led Energy Development Corp. (EDC) said its regenerative strategy has allowed it to create value and invest in future projects amid the COVID-19 pandemic.

In the company’s recently launched 2020 Integrated Report (IR), EDC president and COO Richard Tantoco said the company’s financial health remains strong, allowing it to weather the negative impact of the global pandemic.

Recurring net income attributable to equity holders of the parent amounted to P9.85 billion last year, 15 percent lower than the P11.61 billion recorded in 2019 despite a significant reduction in electricity demand.

Meanwhile, EDC also maintained steady earnings before interest, taxes, depreciation and amortization (EBITDA) of P21.5 billion for 2020 compared to the previous year’s P22.1 billion despite the unforeseen challenges posed by the global COVID-19 pandemic.

“It was fortunate that when the crisis happened, EDC was in good financial health. Our chairman (Federico Lopez) has prudently directed the group companies to practice fiscal discipline and keep debt at low manageable levels. We were able to build up and maintain our cash reserves well in advance,” Tantoco said.

This has allowed EDC to invest in new projects in anticipation of post-COVID business resurgence, such as the 29-megawatt (MW) Palayan Bayan in its existing Bacon-Manito geothermal site in Bicol and the 3.6-MW Mindanao 3 binary plants in its existing Mount Apo geothermal field, as well as the 100-MW Aya hydro project in Nueva Ecija and 20-MW Tanawon geothermal plant also in Bicol later in the year.

EDC said its financial performance is just one of six aspects of operations that it measures as part of its shift to the International Integrated Reporting Council’s integrated reporting (IR) framework, in line with a Lopez group–wide initiative last year toward a renewed mission of “forging collaborative pathways for a decarbonized and regenerative future.”

Tantoco said the company has been practicing sustainability for over decades, but more has to be done by looking beyond profitability and doing less harm.

“We commit to go beyond sustainability by being regenerative as we elevate everything we touch—the environment, our communities, employees, co-creators and partners, and our customers,” he said.

“Our shift to integrated reporting demonstrates our holistic approach to our business—one that carefully considers the capitals at our disposal and the strategies through which we can manage, develop and transform these capitals to continue creating and sharing value with our different stakeholders,” the EDC official said.