EDC's nine-month income weighed down by forex losses and lower revenues

 

Listed geothermal and renewable energy producer Energy Development Corp. (EDC) lowered its net income from January to September by nearly a fifth on lower revenues and foreign exchange losses.

 

In a disclosure to the Philippine Stock Exchange on Thursday, EDC reported a P5.3 billion in consolidated net income attributable to equity holder’s of the Parent, a 24.7-percent drop from P7.1 billion last year.

 

EDC said the lower net income was primarily driven by losses arising from the volatility in the peso-dollar exchange rate. 

 

"The P0.9 billion FX realignment loss in the first three quarters of 2013 was a complete reversal of the P0.8 billion foreign exchange gain reported during the same period in 2012," the company said.

 

EDC’s recurring income slipped by 7.7 percent to P5.8 billion from P6.3 billion last year on lower ancillary revenues from its hydro asset. 

 

Consolidated revenues dropped by 7.7 percent to P19.8 billion from P21.4 billion last year.

 

EDC attributed the decline to revenue reductions of P1.9 billion in FG Hydro from ancillary services and P0.3 billion from EDC’s other operating assets.

 

FG Hydro operates the 132 MW Pantabangan-Masiway hydro power plant in  n Nueva Ecija.

 

The decline in revenues was partially offset by a P0.6 billion increase in revenues from Green Core Geothermal Incorporated (GCGI). 

 

Despite a weaker income, president and COO Richard B. Tantoco said the company's cash balance stood at P18.2 billion with a financial net gearing ratio of 1.03 versus 1.12 last year due to higher equity brought about by higher retained earnings.

 

“The company’s balance sheet has remained robust with adequate capacity to carry out EDC’s growth plans for the balance of 2013 into 2014, as we remain on track for the commissioning of the 40 MW Nasulo Geothermal and the 87 MW Burgos Wind Energy Project in 2014,” he said. 

 

EDC is the world’s largest integrated geothermal producer and one of the leading renewable energy companies in the country with a portfolio of 1,130 MW of geothermal and 132 MW of hydro power plants. — OMG, GMA News