Lopez-owned Energy Development Corp. (EDC) recorded a P4.68-billion income reach in the first half of 2016, a slight increase from its P4.66 billion income in the same period last year.
EDC’s consolidated net income attributable to equity holders of the parent, inclusive of non-recurring items stood at P4.91 billion, higher by seven percent from P4.61 billion in 2015.
The increase came from higher revenues from power projects and lower operating expenses, the company said.
The company’s consolidated revenues improved to P17.01 billion in the first half of the year, up P23 million from P16.78 billion in the same period the previous year.
Improved sales were driven by largely contracted capacity plants, including Tongonan-Palinpinon geothermal plants which reflected a P420 million sale increase on lower unplanned outages, EDC said.
P33 million came from the Pantabangan-Masiway plant due to higher water levels in the dam, while the Burgos wind and solar power plant accounted for P16 million following the resolution of its curtailment issues after the completion of Laoag-San Esteban transmission line.
Plants under the Wholesale Electricity Spot Market (WESM) like BacMan saw a decrease in sales to P54 million and Nasulo to P9 million despite an increase in sales volume.
“In spite of the low WESM price environment, we remain committed to address plant reliability issues fleet-wide,” said EDC senior vice president and chief finance officer Nestor Vasay.
“Investing in the company’s existing asset base is expected to boost cash generation, with the equipment’s improved reliability and output,” he added.
EDC’s operating expenses dropped P71 million with deferral of non-critical projects and the curtailment of business related expenses, exclusive of the increase in depreciation and amortization amounting to P26 million.