Pasig—(PHStocks)—Energy Development Corp. (PSE: EDC), the country’s largest geothermal and wind energy company, posted consolidated revenues of ₱34.2 billion and recurring net income attributable (RNIA) to equity holders of the parent of ₱9.2 billion for 2016.
RNIA posted a 4% year-on-year increase on top of improved performance and lower operating expenses of the Negros Island and First Gen Hydro business units.
Revenues recorded a ₱0.1 billion marginal decrease as compared to 2015, as depressed spot market prices for the Bacman and Nasulo geothermal plants’ uncontracted capacity off-set gains in sales volume firm-wide.
“The Bacman and Nasulo geothermal plants were among the most exposed to last year’s record-low electricity spot market prices. A reported 25% average drop in prices for these plants resulted to a revenue loss of over ₱1.4 billion full-year,” EDC Chief Financial Officer (CFO) Nestor Vasay stated. “However, EDC has moved quickly to address and manage the downside from potentially low spot market prices.” As of December 2016, EDC has lined up contracts that will cover 100% of Bacman’s capacity and almost 80% of Nasulo’s.
EDC’s 150 MW Burgos wind farm, the largest in the country, continued to build on its 2015 performance. Revenues increased by almost ₱0.4 billion as annual wind energy generation increased by 60 GWh from 260 to 320 GWh in 2015 and 2016, respectively. EDC’s hydro unit also posted a 21% increase in annual revenues, primarily driven by higher sales volume. Meanwhile, the company’s Mindanao and Palinpinon geothermal power plants also recorded revenue increases from a combination of higher sales volume and average contract price.
“For this year, EDC will continue with its asset reliability program as it targets to finish the retrofit of the Tongonan power plant and the refurbishment of other generating units in Leyte. As we had been telling our investors, our focus for the past years has been embarking on initiatives to deliver ‘financial predictability’ — some benefits of which we expect to see starting this year,” Vasay added.
The company’s financial position remained strong with cash balance of ₱10.6 billion. It maintained a comfortable gearing level with consolidated net debt to equity of 1.1 to 1.0 and consolidated net debt to EBITDA of 2.9 to 1.0.