ENERGY Development Corp. (EDC) posted an 11% increase in first-half net income to P5.2 billion, although the Lopez-led company noted earnings growth is likely to be moderate in the second half.
In a statement on Monday, Nestor H. Vasay, EDC chief financial officer, said the semester’s results “confirm progress EDC has made in boosting cash generation and in delivering financial predictability to investors.”
He added the company was able to achieve its financial performance by addressing the uncontracted portion of its Bacon-Manito (BacMan) geothermal power plants in Bicol, and by doing an extensive reliability programs for its plants in Leyte.
EDC, the company’s largest geothermal and wind energy producer, said the double-digit growth compares with the P4.7-billion consolidated recurring net income attributable to equity holders of the parent firm in the first half of 2016.
“Earnings growth was strong during the first half of the year, but will likely become moderate for the second half of 2017 following the magnitude 6.5-earthquake that struck the island of Leyte last July 6,” Mr. Vasay said.
“We, however, remain steadfast and have exerted efforts to expedite the return to service of the generating capacity of the Leyte plants back to its pre-earthquake levels,” he added.
Consolidated revenues during the six-month period rose by 4% to P17.7 billion from P17 billion in the same period last year, driven by higher energy sales volume booked by the United Leyte plants and the reduction in the BacMan plants’ exposure to electricity spot market after the increased proportion of contracted energy to total sales.
Including nonrecurring items, EDC registered consolidated net income attributable to equity holders of the firm of P4.6 billion, down 6% from the P4.9 billion posted a year ago.
The company said the decline was largely because of the higher operating expense, foreign exchange losses on loans and loss from the early redemption of the company’s dollar-denominated bonds. The drop was in part softened by the higher revenues from the United Leyte and BacMan power plants.
As of the first half, EDC had a cash balance of P10.9 billion. It said gearing level was “comfortable” with a consolidated debt at 1.2 times the level of equity, and consolidated net debt to EBITDA (earnings before interest, tax, depreciation and amortization) of 2.65 times to 1.
Shares in EDC were unchanged at P6.82 each on Monday. — Victor V. Saulon
