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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