Lopez-led Energy Development Corporation’s (EDC) net income for the first quarter of the year dipped by 19% to Php2.63 billion versus the Php3.26 billion recorded in the same period in 2021.
“The decrease was mainly due to higher costs of sale (Php1,049.9 million) and higher net provision for income tax (Php194.6 million) partly offset by higher revenue (Php497.8 million),” EDC said in its disclosure to the Securities and Exchange Commission.
EDC CFO Erwin Avante believes that the effects of Typhoon Odette affected the company’s output from the time it hit Visayas and Mindanao in mid-December 2021 until mid-January. He pointed out that while their power plants were operational, the National Grid Corporation of the Philippines’ (NGCP) transmission lines were down.
NGCP particularly transmits power from EDC’s geothermal power plants in Leyte to Cebu and Bohol. Odette toppled transmission towers in Leyte, Bohol, Cebu, and Negros – islands where the typhoon passed through. Among those toppled were the two special towers in Bohol, which were restored in April.
EDC’s energy sales volume decreased by 7.5% or 175.8 gigawatt-hours (GWh) to only 2,174.4 GWh in 2021 due to lower generation.
Avante said that the company recorded lower wind speeds in the first quarter of this year versus the same period last year.
However, the company’s revenue increased by 4.8% to Php10.89 billion from Php 10.38 billion previously due to higher prices in the Wholesale Electricity Spot Market.
Cost of electricity sales also went up by 21.8% or Php29.7 million to Php1.33 billion due to provisions of impairment of parts and supplies inventories, purchased services and utilities, business expenses, and rental, insurance, and taxes.
EDC earlier said that it will be allotting Php17.38 billion in capital expenditures for 2022, which will be used for the operation, maintenance, and expansion of its power plants.