By Danessa Rivera (The Philippine Star) | Updated May 14, 2016 - 12:00am
MANILA, Philippines - Lopez-led power developer Energy Development Corp. (EDC) said its recurring net profit and revenues registered steady growth in the first quarter due to higher energy sales.
EDC reported a consolidated recurring net income of P2.63 billion in the first three months of 2016, seven percent higher than the P2.46 billion posted during the same period last year.
Meanwhile, consolidated revenues reached P9.10 billion, also up seven percent from P8.5 billion a year ago.
The firm said the slight improvement in core income and revenues resulted primarily from higher energy sales of its Burgos Wind project following the completion of the up-rated Laoag-San Esteban transmission line in September 2015.
For the first quarter, the Burgos Wind’s core income increased by P520 million after a P670-million increase in revenues.
Inclusive of non-recurring items, EDC’s consolidated net income stood at P3.25 billion, 31 percent higher than the P2.49 billion in 2015.
The company said the increase was primarily driven by higher revenues of about P600 million mainly from Burgos Wind and higher forex gains amounting to P480 million following the realignment of the dollar-denominated loans, partly offset by higher plant operating expenses.
EDC said revenues from other plants were partially muted as some of the gains in sales volumes have been negated by lower prices in the Wholesale Electricity Spot Market (WESM).
“The increased revenues from plants with largely contracted capacities, namely, 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 firm said.
Richard Tantoco, EDC president and COO, said the significant effects of low electricity spot price are now being addressed by the company.