EDC posts 40% increase in 2014 recurring net income

Energy Development Corporation (EDC), the country's largest geothermal and wind energy company, posted a Php 9.2 billion recurring net income attributable to equity holders of the Parent for 2014.  The FY 2014 result is 40% higher than the Php 6.6 billion posted in the previous year. The record high performance primarily resulted from electricity sales from the start of commercial operations of its Bacman Plants following their rehabilitation.  The timely commissioning of the Nasulo Geothermal Project also significantly contributed to the record high income.

Consolidated revenues reached Php 30.9 billion in 2014, up by Php 5.2 billion, or 20% from the Php 25.7 billion in 2013. More than half of the increase was attributed to Bacman at Php 2.8 billion. The successful commissioning of both the Nasulo power plant and the Burgos Wind project also added revenues amounting to Php 0.7 billion and Php 0.2 billion, respectively. Php 0.5 billion in higher electricity sales was also reported for Mindanao, mainly due to the absence of any shortfall adjustments.

"We are now realizing the benefits from investments made for the Bacman plant rehabilitation works, the 150 MW Burgos wind, and the 49.4MW Nasulo geothermal projects," EDC President and Chief Operating Officer Richard Tantoco said.

EDC has likewise executed well the past 12 months with the earlier than expected return to service of the Yolanda-damaged Leyte plants last May 2014.

"Moving forward, we will progressively implement engineering solutions to typhoon-proof the cooling tower assets of our geothermal power plants to prevent similar damage in the future," Mr. Tantoco added.
Inclusive of non-recurring items, consolidated net income attributable to equity holders of the Parent reached Php 11.7 billion, 149% higher compared to the Php 4.7 billion recorded in the previous year. The movement was primarily driven by the Php 5.2 billion increase in revenue and the Php 1.9 billion net recovery on impairment for the Northern Negros Power Plant.

distributed by