Press Release: EDC Reports 9-month Attributable Recurring Net Income of Php7.05Bn

November 10, 2016

OIC-HEAD, Disclosures Department The Philippine Stock Exchange, Inc. Philippine Stock Exchange Plaza

Ayala Triangle, Ayala Avenue, Makati City

Dear Mr. Zuño:

In compliance with the disclosure requirements of the Exchange, we submit the attached press release entitled "EDC Reports 9-month Attributable Recurring Net Income of Php7.05Bn".

cc: VINA VANESSA S. SALONGA

Head - Issuer Compliance and Disclosure Department (ICDD) Philippine Dealing & Exchange Corp.

November 10, 2016

Energy Development Corporation (EDC), reports today a consolidated recurring net income attributable to equity holders of the Parent of Php7.05Bn for the first nine months of 2016. This is almost equal to the Php6.99Bn posted during the same period in 2015.

Revenues reported in the first three quarters of 2016 was Php25.38Bn as compared to the Php25.32Bn in same period of 2015. There were increases in energy sales posted by plants with largely contracted capacities, namely, Tongonan & Palinpinon (Php0.48Bn) on account of lower unplanned outages, Pantabangan-Masiway (Php0.36Bn) with higher water levels in the dam, Burgos wind & solar (Php0.23Bn) following the completion of the Laoag-San Esteban transmission line. Also, contributing were the Mindanao and the Unified Leyte Plants at Php0.13Bn and 0.02Bn, respectively. Plant capacities exposed to the spot markets as in the Bacman (Php0.90Bn) and Nasulo (Php0.33Bn), partially muted with lower spot prices the earlier reported gains in sales volumes.

Inclusive of an increase in depreciation and amortization expense amounting to Php0.31 Bn, operating expense registered a Php0.69Bn reduction year-on-year.

"In the context of a challenging competitive environment, we have focused on investing to improve reliability, increase generation output, thereby lowering unit costs," President and COO Richard B. Tantoco said.

"Full retrofitting works for Tongonan unit 1 has begun. By middle of next year, the rehab of all units will be complete," Tantoco added.

Inclusive of non-recurring items, consolidated net income attributable to equity holders of the Parent stood at Php7.01Bn, 20% higher than the Php5.87Bn reported in 2015. The increase was primarily driven by higher revenues from power projects, and lower operating expenses, partly offset by reduced revenues from the Company's uncontracted capacities.