EDC reports P5.8-B net profit in 9 mos

MANILA, Philippines - Lopez-owned geothermal company Energy Development Corp. (EDC) posted a recurring net income of P5.8 billion, 7.7 percent lower than the P6.3 billion earned during the same period last year.

In a disclosure to the Philippine Stock Exchange (PSE), EDC officials attributed the income decline to lower ancillary revenues from its hydro assets.

“Inclusive of non-recurring items, EDC reported a P5.3 billion consolidated net income for the first nine months of 2013, 24.7 percent lower than the P7.1 billion posted in the same period last year. The non-recurring decrease was primarily driven by losses arising from the volatility in the peso-dollar exchange rate,” EDC said.

The listed geothermal company posted consolidated revenues of P19.8 billion, 7.7 percent or P1.6 billion lower than the P21.4 billion generated in the same period last year.

“Bulk of the decline is attributed to FG Hydro’s P1.9-billion revenue reduction principally from ancillary services, and another P0.3 billion from EDC’s other operating assets,” EDC said.

However, this was partially offset by a P0.6-billion increase in revenues from EDC’s Green Core Geothermal Inc. (GCGI).

As of the first nine months of 2013, EDC’s cash balance stood at P18.2 billion with a financial net gearing ratio of 1.03 versus 1.12 in the same period last year due to higher equity brought about by higher retained earnings, the company said.

EDC president and chief executive officer Richard B. Tantoco said despite the decline in income, the company’s balance sheet remains robust to support long-term plans.

“The company’s balance sheet has remained robust with adequate capacity to carry out EDC’s growth plans for the balance of 2013 into 2014, as we remain on track for the commissioning of the 40-megawatt Nasulo geothermal and the 87-megawatt Burgos wind energy project in 2014,” Tantoco said.