EDC says energy sales, forex gains lift first half profit up 71.5%

Net income of listed geothermal and renewable energy producer Energy Development Corp. (EDC) grew by 71.5 percent to P6.285 billion from P3.664 billion on foreign exchange gains and higher energy sales even with the partial operations of Bacon-Manito (Bac-Man) geothermal plants in the Bicol Region.

 

Consolidated core net income reached P5.4 billion in the first half, 28 percent higher compared with P4.2 billion a year earlier, the company said in a statement attached to a disclosure Wednesday.

 

EDC attributed the increase largely due to higher energy sales for the period from the partial operations of the Bacon-Manito (Bac-Man) Geothermal Inc. in Albay and Sorsogon.

 

Bac-Man Units 1 and 3 were temporarily shut down for the installation of new turbine rotors, EDC president and COO Richard Tantoco said in the statement.

 

"The plants will contribute to our second half revenues starting end-August when Units 1 and 3 return to service," he said. 

 

"The installation of brand new Toshiba steam turbine rotors has not been affected by Typhoon Glenda and remains on schedule for the fourth quarter this year and first quarter next year,” he added.

 

The company also booked forex gains resulting from the volatility in peso-dollar exchange rates, and insurance proceeds for damages the other geothermal facilities in Leyte incurred from Typhoon Yolanda.

 

Unified Leyte was damaged during the onslaught of Yolanda on Nov. 8, 2013.

 

Consolidated revenues amounted to P15.2 billion, a 13 percent increase from P13.4 billion in the same comparable period last year, primarily driven by the P1.5 billion revenue contribution from the Bac-Man power plant.

 

The Mindanao and Palinpinon power plants also reported a P0.3 billion and P0.2 billion in revenue increases, respectively.

 

Subsidiary FG Hydro Corp., however, reported lower revenues due to the mandated re-computation of electricity spot prices by the Energy Regulatory Commission (ERC) for the November and December 2013 billings and which took effect in the first quarter this year.

 

“We expect the growth of our top-line to be sustained into the second half of the year as we commence commercial operations for our Nasulo Geothermal,” Tantoco said.

 

EDC is constructing a 49.4 megawatt Nasulo geothermal power plant in Valencia, Negros Oriental and is expected to start commercial operations in January 2016. – Danessa O. Rivera/VS, GMA News