Tuesday, November 13, 2018

EDC 9-month recurring profit drops 3%



November 13, 2018 | 12:05 am

ENERGY Development Corp. (EDC) reported a 3.1% decline in recurring net income to P6.4 billion for the nine months to September, the Lopez-led company said on Monday, in part as maintenance work increased its operating expense.
Nestor H. Vasay, EDC chief financial officer, said the company had about P3.8 billion in additional operating expense that was mainly driven by some of its plant maintenance and well work-over activities.
“But we expect our OPEX (operating expense) to go down, as we had implemented a number of operational and other efficiency initiatives across the company,” he added.
In the same period last year, the company recorded P6.6 billion in profit attributable to equity holders of the parent firm. The company did not immediately disclose third quarter figures.
EDC, the country’s largest geothermal and wind energy company, registered consolidated revenues of P27.7 billion for the January-September period, higher by 13% compared with the level a year ago.
“Our Unified Leyte plants had fully recovered from the impact of Typhoon Urduja, with generation volume pretty much catching up with what we had posted during the same period in 2017,” Mr. Vasay said.
“Generation volume for the rest of the fleet had also gone up, with Bacman, Tongonan and Palinpinon all registering volume growth of at least 15%. Our Burgos Wind Farm also posted a 21% increase in volume, keeping us on track to potentially surpassing its record performance last year,” he added.
EDC, which delivers 1,472 megawatts (MW) of renewable energy to the country, said its financial position stayed strong with cash balance of P19.3 billion. It said it had maintained a comfortable gearing level with consolidated debt to equity of 0.98x and consolidated net debt to earnings before interest, tax, depreciation and amortization (EBITDA) of 2.46x.
The company’s end-September report comes after it concluded its voluntary delisting tender offer. It previously said that after the close of its tender offer period on Oct. 22, it had accepted and purchased a total of 2,009,107,731 common shares out of 2,040,006,713 public common shares at P7.25 each.
Almost 98.5% of the company’s public shareholders participated in the tender offer, it said.
Aside from its hydro, solar, and wind power projects, EDC provides energy through its 150-MW Burgos wind farm. Its nearly 1,200 MW in geothermal installed capacity accounts for 61% of the country’s total for the energy technology. — Victor V. Saulon

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