Renewable energy leader Energy Development Corp. said Wednesday its regenerative strategy helped the company weather and create value amid the COVID-19 pandemic.
EDC posted recurring net income attributable to equity holders of the parent at P9.85 billion last year despite a significant reduction in electricity demand.
EDC posted a 15-percent decline in recurring net income attributable to equity holders of the parent from P11.61 billion in 2019.
“2020 is a year wherein I cannot reasonably complain about the performance of the company,” EDC president and chief operating officer Richard Tantoco said in the recently launched 2020 Integrated Report.
EDC disclosed a steady EBITDA (earnings before interest, taxes, depreciation and amortization) of P21.5 billion in 2020, compared to previous year’s P22.1 billion, despite the unforeseen challenges posed by the global COVID-19 pandemic.
“It was fortunate that when the crisis happened, EDC was in good financial health. Our Chairman [Federico R. Lopez] has prudently directed the group companies to practice fiscal discipline and keep debt at low manageable levels. We were able to build up and maintain our cash reserves well in advance,” said Tantoco.
EDC invested in new projects in anticipation of post-COVID business resurgence, such as the 29-megawatt Palayan Bayan in the Bacon-Manito geothermal site in Bicol, the 3.6-MW Mindanao 3 binary plants in the Mount Apo geothermal field, the 100-MW Aya hydro project in Nueva Ecija and the 20-MW Tanawon geothermal plant in Bicol later in the year.
EDC said its financial performance was merely one of six aspects of operations that it measures as part of its shift to the International Integrated Reporting Council’s integrated reporting framework, in line with the Lopez group–wide initiative last year toward a renewed mission of “forging collaborative pathways for a decarbonized and regenerative future”.
“Over four decades of practicing sustainability has made us realize that it is not nearly enough. We should shift to regenerative thinking that calls for us to look beyond profitability and doing less harm. We commit to go beyond sustainability by being regenerative as we elevate everything we touch—the environment, our communities, employees, co-creators and partners, and our customers,” said Tantoco.
“Our shift to integrated reporting demonstrates our holistic approach to our business—one that carefully considers the capitals at our disposal and the strategies through which we can manage, develop and transform these capitals to continue creating and sharing value with our different stakeholders,” he said.
EDC’s recently released IR for 2020 detailed the company’s strategy, governance and management of six capitals, namely: financial capital, manufactured capital, human capital, social and relationship capital, intellectual capital and natural capital.