October 15, 2008

May 13, 2016

JANET A. ENCARNACION

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 reports 1Q 2016 attributable recurring net income of Php2.63Bn, up by 7%".

Thank you

Press Release

May 13, 2016

EDC reports 1Q 2016 attributable recurring net income of Php2.63Bn, up by 7%

Energy Development Corporation (EDC), the country's largest geothermal and wind energy company, reported a consolidated recurring net income attributable to equity holders of the Parent of Php2.63Bn for the first quarter of 2016, or 7% higher than the Php2.46Bn posted during the same period last year.

Consolidated revenues reached Php9.10Bn in 1Q 2016, up by Php0.60Bn or 7%, from the Php8.50Bn in 1Q 2015.

Increased core income and revenues resulted primarily from higher energy sales being reported by EDC's Burgos Wind Project following the completion of the uprated Laoag-San Esteban transmission line last September 2015. For the first quarter of 2016, Burgos Wind's core income increased by Php0.52Bn following a Php0.67Bn increase in revenues.

Revenue results for the balance of the portfolio were partially muted as some of the gains in sales volumes have been negated by lower spot prices. The increased revenues from plants with largely contracted capacities, namely, Burgos Wind, Unified Leyte and Palinpinon/Tongonan, were partly offset by lower reported revenues from plant capacities exposed to the spot markets, as in the Bacman and Nasulo Power Plants.

"The effects of low electricity spot price, while significant, are being addressed by the company," Richard Tantoco EDC President and COO said.

"If you will recall, we started deferring CAPEX-intensive growth projects late in 2015 to instead re-focus investments on the existing asset base to boost overall output, reliability and cash generation. We are already seeing some of the gains come in," Tantoco added.

Inclusive of non-recurring items, consolidated net income attributable to equity holders of the Parent stood at Php3.25 billion, 31% higher than the Php2.49Bn in 2015. The increase was primarily driven by higher revenues of about Php0.60Bn mainly from Burgos Wind and higher forex gains amounting to Php0.48Bn following the realignment of the US$ denominated loans, partly offset by higher plant operating expenses.

As of the first 3 months of 2016, the Company's financial position remained strong with cash balance of Php 17.85Bn. It maintained a comfortable gearing level with consolidated net debt to equity of 1.17 to 1 and consolidated net debt to EBITDA of 2.91 to 1.

Energy Development Corporation published this content on 13 May 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 13 May 2016 05:48:03 UTC.

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