Philippines: EDC recurring income up 11% to P5.2 billion

Philippines: EDC recurring income up 11% to P5.2 billion

With higher capacity sales from its Bacon-Manito and Unified Leyte
geothermal plants, the consolidated recurring net income of Lopez-held
Energy Development Corporation (EDC) had climbed 11 percent to P5.2 billion
in the first half from P4.68 billion in the same period last year.

However, if inclusive of non-recurring items, consolidated earnings suffered
slight dip of 6.0-percent to P4.6 billion from the year-ago level of P4.9
billion.

That had been due to higher operating expenses compounded by foreign
exchange losses, according to the company.

EDC added the decline had also been due to "loss from the early redemption
of a portion of the company's US dollar-denominated bonds," although partly
offset by higher revenues mainly from its Unified Leyte and Bacon-Manito
power plants.

In terms of consolidated revenues, the Lopez-controlled firm was still on a
favorable stride with 4.0-percent increase to P17.7 billion from last year's
P17 billion.

As asserted by EDC Chief Financial Officer Nestor H. Vasay, the first half
result still manifests the level of progress that "EDC has made in boosting
cash generation and in delivering financial predictability to investors by
addressing the un-contracted portion of its BacMan power plants."

Additionally, the company pursued "extensive asset reliability program for
the Leyte power plants," considerably the biggest asset that EDC has on its
portfolio.

It was further explained that "the increase was driven primarily by higher
energy sales volumes booked by Unified Leyte plants and the reduction in the
BacMan plants' exposure to the electricity markets following the increased
proportion of contracted energy sales."

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Link to Original Article:
http://business.mb.com.ph/2017/08/14/edc-recurring-income-up-11-to-p5-2-bill
ion/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com