By Danessa Rivera (The Philippine Star) | Updated March 2, 2017 - 12:00am
MANILA, Philippines - Lopez-led Energy Development Corp. (EDC) grew its earnings over a fifth in 2016 due to improved sales of its wind and hydropower assets coupled with lower operating expenses from its power plants.
EDC said its net income rose 24 percent from P7.86 billion in 2015 to P9.72 billion last year.
Meanwhile, core net income increased four percent from P8.8 billion to P9.2 billion “on top of improved performance and lower operating expenses of the Negros Island and First Gen Hydro business units,” the firm said.
Revenues for the year amounted to P34.2 billion, a slight decrease of P0.1 billion from the previous year, as depressed spot market prices for the Bacman and Nasulo geothermal plants’ uncontracted capacity offset gains in overall sales volume.
“The Bacman and Nasulo geothermal plants were among the most exposed to last year’s record-low electricity spot market prices. A reported 25 pecent average drop in prices for these plants resulted in a revenue loss of over P1.4 billion full-year,” EDC chief financial officer Nestor Vasay stated.
“However, EDC has moved quickly to address and manage the downside from potentially low spot market prices,” he said.
As of December 2016, EDC has lined up contracts that will cover 100 percent of Bacman’s capacity and almost 80 percent of Nasulo’s.
EDC’s 150-megawatt (MW) Burgos wind farm, the largest in the country, continued to build on its 2015 performance. Revenues increased almost P0.4 billion as annual wind energy generation increased 60 gigawatt-hours from 260 to 320 gwh in 2015 and 2016, respectively.
EDC’s hydro unit also posted a 21 percent increase in annual revenues, primarily driven by higher sales volume.