EDC cites “regenerative strategy” behind pandemic performance

edc geothermal

Lopez-led Energy Development Corp. (EDC) said it recorded a Php9.85 billion in recurring net income attributable to equity holders of the parent in 2020 despite a significant reduction in electricity demand due to its “regenerative strategy.”

EDC, through parent firm First Gen Corporation, reported a $4.6 billion profit to $59.8 million from $55.2 million previously. 

The renewables firm also reported steady earnings before interest, taxes, depreciation, and amortization (EBITDA) of Php21.5 million for 2020 from Php22.1 billion in the previous year, despite the challenges brought by the COVID-19 pandemic. 

“It was fortunate that when the crisis happened, EDC was in good financial health. Our Chairman [Federico Lopez] has prudently directed the group companies to practice fiscal discipline and keep debt at low manageable levels. We were able to build up and maintain our cash reserves well in advance,” EDC President and COO Richard Tantoco said in a statement.

The firm was also able to invest in new projects, such as the 29-megawatt (MW) Palayan Bayan in its existing Bacon-Manito geothermal site in Albay, the 3.6MW Mindanao 3 binary plants in the Mt. Apo geothermal field in North Cotabato, 100MW Aya hydroelectric project in Nueva Ecija, and the 20MW Tanawon geothermal plant in Sorsogon.

Financial performance is one of the six aspects of operations that EDC measures as part of its shift to the International Integrated Reporting Council’s integrated reporting (IR) framework as part of its group-wide initiative toward a renewed mission of “forging collaborative pathways for a decarbonized and regenerative future.”

“Our shift to integrated reporting demonstrates our holistic approach to our business—one that carefully considers the capitals at our disposal and the strategies through which we can manage, develop and transform these capitals to continue creating and sharing value with our different stakeholders,” Tantoco said.

The company’s IR for 2020 detailed the strategy, governance, and management of capitals, namely: financial capital, manufactured capital, human capital, social and relationship capital, intellectual capital, and natural capital. 

EDC reported a total of 9,111.8 gigawatt-hours (GWh) generation volume sold for 2020, across its geothermal, wind, solar, and hydro operations. It has also utilized technologies such as data intelligence as part of its massive digital transformation.