Energy Development Corp., the country’s largest renewable energy producer, said Wednesday consolidated recurring core income attributable to equity holders of the parent fell 10 percent in the first nine months to P7 billion from P7.8 billion a year ago.
EDC attributed the decline in core income to lower output of the 112.5-megawatt Tongonan geothermal power plant, resulting from the unplanned outage of a 37.5-MW unit early in 2015.
Higher operating expenses largely spent on typhoon resiliency works and the start of income tax payments of the Pantabangan Masiway hydro plants following the expiration of its income tax holiday in April 2014 also affected the core income.
EDC said including non-recurring items, consolidated net income attributable to equity holders of the parent or reported net income went down by 43 percent in the January-September period to P5.9 billion from P10.4 billion a year earlier.
“The decrease was primarily driven by higher foreign exchange losses of P1.2 billion [versus P0.2 billion last year] and the absence of any impairment reversals this year. Last year, the company recognized a P2-billion impairment reversal on its Northern Negros power plant,” it said.
EDC’s consolidated revenues increased 10 percent in the nine-month period to P25.3 billion from P23 billion recorded in the same period in 2014.
The company said the revenue growth was led higher energy sales coming from the newly rehabilitated Bacon-Manito geothermal power plants that contributed P1.2 billion and the recently commissioned Nasulo power plant that contributed an additional P600 million.
The newly commissioned 150-MW Burgos wind power plant also contributed P1.3 billion in fresh revenues.
“The completion of the uprated Laoag-San Esteban transmission line last September is timely given that we expect to generate close to 75 percent of our energy sales from the Burgos wind project during the next six months,” EDC president and chief operating officer Richard Tantoco said.
“Going forward, we will continue to proactively invest in both typhoon resiliency and equipment upgrades to increase output, improve reliability and boost the energy and cash generation of our power plants,” Tantoco said.
EDC, an affiliate of First Gen Corp. of the Lopez Group, is the country’s largest geothermal producer with an installed capacity of around 1,130 MW and the second largest producer second to the United States.