Lopez-led Energy Development Corporation (EDC) posted a 6.6% drop in earnings to Php11.5 billion in 2020 due to lower generation and spot market prices.
In a report by The Philippine Star, EDC attributed the profit decline to lower revenues and higher provision for income taxes worth Php658 million.
EDC sold 9,112 gigawatt-hours (GWh) of energy volume at the end of the year, lower by two percent from the previous year.
Revenues also declined by 10.2% to Php37.6 billion due to lower generation and price reductions at the Wholesale Electricity Spot Market (WESM).
Subsidiary Bac-Man Geothermal Inc. (BGI), which operates the Bacon-Manito Geothermal Power Plant in Albay, reported a 26.5% decline in revenues in 2020 to Php4.9 million mostly due to lower average prices during the year.
Meanwhile, FG Hydro Power Corporation, jointly owned by EDC and sister firm First Gen Corporation, reported a revenue drop of 13.5% to Php2.07 billion, as average WESM prices slumped by 51.3%. FG Hydro operates the Pantabangan and Masiway hydroelectric power plants in Nueva Ecija.
Electricity generated by Pantabangan also went down by 24.9% because of low reservoir elevation, which lowered the plant’s dependable capacity by 25.1%.
EDC Siklab Power Corporation, the company’s solar arm, also posted lower revenues of Php33.6 billion, as Gaisano Capital Mall loads lessened due to the COVID-19 pandemic.
Another subsidiary, Unified Leyte Geothermal Energy Inc. experienced a 37.6% revenue decline to Php1.14 billion because of lower average selling price and volume.
However, EDC Burgos Wind Power Corporation — operator of Southeast Asia’s largest wind farm in Ilocos Norte — increased its revenue to $87.7 million due to the escalation adjustment in its feed-in tariff (FIT) from 2016 to 2020 toltalling $24.2 million, as well as higher generated sales volume.
Recurring net income, however, declined by 17.7% to Php9.9 billion due to lower recurring revenue and higher recurring income tax provision.