Pasig—(PHStocks)—Energy Development Corp. (PSE: EDC), the country’s largest geothermal and wind energy company, reported a consolidated recurring net income attributable to equity holders of the Parent of Php2.63 billion for the first quarter of 2016, or 7% higher than the Php2.46billion posted during the same period last year.
Consolidated revenues reached Php9.1 billion in 1Q 2016, up by Php0.6 billion or 7%, from the Php8.5 billion in 1Q 2015.
Increased core income and revenues resulted primarily from higher energy sales being reported by EDC’s Burgos Wind Project following the completion of the uprated Laoag-San Esteban transmission line last September 2015. For the first quarter of 2016, Burgos Wind’s core income increased by Php0.52 billion following a Php0.67 billion increase in revenues.
Revenue results for the balance of the portfolio were partially muted as some of the gains in sales volumes have been negated by lower spot prices. 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 effects of low electricity spot price, while significant, are being addressed by the company,” said Richard Tantoco, EDC president and COO. “If you will recall, we started deferring CAPEX-intensive growth projects late in 2015 to instead re-focus investments on the existing asset base to boost overall output, reliability and cash generation. We are already seeing some of the gains come in.”
Inclusive of non-recurring items, consolidated net income attributable to equity holders of the Parent stood at Php3.25 billion, 31% higher than the Php2.49 billion in 2015. The increase was primarily driven by higher revenues of about Php0.60 billion mainly from Burgos Wind and higher forex gains amounting to Php0.48 billion following the realignment of the US$ denominated loans, partly offset by higher plant operating expenses.
As of the first 3 months of 2016, the Company’s financial position remained strong with cash balance of Php 17.85 billion. It maintained a comfortable gearing level with consolidated net debt to equity of 1.17 to 1 and consolidated net debt to EBITDA of 2.91 to 1.