EDC income down 35% in ’15
Energy Development Corp. (EDC) posted a 35-percent drop in profit in 2015 due to extraordinary losses and higher costs.
In a financial report, EDC said its consolidated net income attributable to equity holders of the parent stood at P7.6 billion, down from P11.7 billion in 2014.
The decline was primarily due to the absence in 2015 of a P2.1-billion impairment reversal recorded in 2014 for the Northern Negros power plant and higher foreign exchange losses of P1.3 billion in 2015 brought about by the depreciation of the peso against the US dollar, EDC said.
Consolidated revenue hit P34.4 billion in 2015, up by P3.5 billion or 11 percent from P30.9 billion in 2014.
The increased revenue was attributed to higher energy sales, buoyed by contributions from Burgos Wind power plant at P2.2 billion; Bacman, P1.2 billion and Nasulo, P600 million.
Despite the reported increase, “FY (fiscal year) 2015 revenue fell short of target, primarily due to reliability issues at the Tongonan Geothermal Plant and the temporary curtailment of Burgos Wind Project early in the year due to transmission constraints,” EDC president and COO Richard Tantoco said.
Tantoco said the company was expected to start the full rehabilitation and retrofitting work on the Tongonan units in October this year with the new turbine rotors from Mitsubishi improving efficiency and increasing output.
Also, FY 2015 consolidated recurring net income attributable to equity holders of the parent of P8.8 billion registered a 4-percent reduction from the P9.2 billion posted in the previous year, on account of higher operating expenditures.
