The Energy Development Corp. (EDC) said its core profit in the first half of 2014 grew by almost a third year-on-year as the partial operation of the Bacon-Manito geothermal facility in Bicol region helped push energy sales.
EDC reported a consolidated core income of P5.4 billion in the January-June period, or 28 percent higher than the P4.2 billion booked in the same period last year.
Inclusive of non-recurring items, EDC’s consolidated net income attributable to equity holders of the parent reached P6.3 billion, or 87 percent higher than the P3.4 billion recorded in the same period last year. The company said the boost came mainly from foreign exchange gains resulting from the volatility in peso-dollar exchange rates and receipt of insurance proceeds for damages to company facilities post Supertyphoon “Yolanda.”
Consolidated revenue amounted to P15.2 billion, up by P1.8 billion or 13 percent from the P13.4 billion recorded during the same period in 2013. This was primarily driven by the P1.5 billion revenue contribution of the BacMan power plant, EDC said.
“We’re finally reaping some of the benefits of our revised rehab strategy for BacMan. The plants will contribute to our second half revenues starting end-August when Units 1 and 3 return to service,” EDC president and COO Richard Tantoco said. The installation of brand new Toshiba steam turbine rotors were not affected by typhoon “Glenda” and remain on schedule for the fourth quarter this year and first quarter next year, he said.
The Mindanao and Palinpinon power plants also reported revenue hikes of P3 billion and P2 billion, respectively. This was primarily due to the higher recorded energy sales for both power plants.
FG Hydro Corp.’s revenues declined by P200 million due to the mandated re-computation of electricity spot prices by the Energy Regulatory Commission (ERC) for November and December 2013 billings 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 (project),” Tantoco said.