Energy Development : Press Release: EDC posts 28% jump in H1 core net income

Energy Development Corporation

38th Floor, One Corporate Centre Building, Julia Vargas corner Meralco Avenue

Ortigas Center, Pasig 1605, Philippines

Trunklines: +63 (2) 667-7332 (PLDT) / +63 (2) 755-2332 (Globe)

August 12, 2014

HEAD, Disclosures Department

The Philippine Stock Exchange, Inc. Philippine Stock Exchange Plaza

Ayala Triangle, Ayala Avenue, Makati City

Dear Ms. Encarnacion:

In compliance with the disclosure requirements of the PSE, we submit the attached press release entitled "EDC posts 28% jump in H1 core net income".

Thank you.

Energy Development Corporation

38th Floor, One Corporate Centre Building, Julia Vargas corner Meralco Avenue

Ortigas Center, Pasig 1605, Philippines

Trunklines: +63 (2) 667-7332 (PLDT) / +63 (2) 755-2332 (Globe)

August 12, 2014

Energy Development Corporation (EDC) reported a consolidated recurring net income attributable to equity holders of the Parent of Php5.4 billion in the first half of 2014, up by 28% from the Php4.2 billion for the same period last year. The increase is largely due to higher energy sales for the period with the partial operation of the BacMan power plants.
Consolidated revenues amounted to Php15.2 billion, up by Php1.8 billion, or 13%, from the Php13.4 billion recorded during the same period in 2013. This was primarily driven by the Php1.5 billion revenue contribution from the BacMan power plant.
"We're finally reaping some of the benefits of our revised rehab strategy for BacMan. The plants will contribute to our second half revenues starting end-August when Units 1 and 3 return to service. The installation of brand new Toshiba steam turbine rotors has not been affected by Typhoon Glenda and remains on schedule for the fourth quarter this year and first quarter next year," EDC President and Chief Operating Officer (COO), Richard Tantoco explains.
The Mindanao and Palinpinon power plants also reported a Php0.3 billion and Php0.2 billion revenue increase, respectively. This was primarily due to the higher recorded energy sales for both power plants.
FG Hydro Corporation's revenues, meanwhile, declined by Php0.2 billion due to the mandated re-computation of electricity spot prices by The Energy Regulatory Commission (ERC) for November and December 2013 billings which took effect in the first quarter this year.
"We expect the growth of our top-line to be sustained into the second half of the year as
we commence commercial operations for our Nasulo Geothermal," Tantoco added.
Inclusive of non-recurring items, EDC's consolidated net income attributable to equity holders of the Parent for the first semester reached Php6.3 billion, 87% higher compared to the Php3.4 billion recorded in the same period last year. Foreign exchange gains resulting from the volatility in peso-dollar exchange rates and receipt of insurance proceeds for damages to company facilities post Typhoon Yolanda primarily contributed to this change.
As of end-June, the Company maintained a comfortable gearing level with consolidated net debt to equity of 1.21 to 1 and a consolidated net debt to Earnings before Income Tax Depreciation and Amortization (EBITDA) of 2.91 to 1.

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