Energy Development Corp. of the Lopez Group on Thursday said core income reached P4.68 billion in the first six months of the year, slightly higher than P4.66 billion posted year-on-year.
EDC, the country’s largest geothermal and wind energy company, said inclusive of non-recurring items, consolidated net income attributable to equity holders of the parent stood at P4.91 billion, seven percent higher than P4.61 billion on year.
EDC in a statement attributed the increase to higher revenues from power projects and lower operating expenses.
The company said consolidated revenues improved to P17.01 billion in the first half, up P23 million from P16.78 billion in the same period last year.
EDC said major contributors to the improved sales were driven by plants with largely contracted capacities, including the Tongonan-Palinpinon geothermal plants which saw an increase in sales to P420 million on lower unplanned outages.
Pantabangan-Masiway hydro plants contributed P33 million due to higher water levels in the dam, while Burgos wind and solar power plant accounted for P16 million following the resolution of its curtailment issues after the completion of the Laoag-San Esteban transmission line.
Meanwhile, plants that were exposed to the Wholesale Electricity Spot Market such as Bacman saw a decrease in sales to P54 million and Nasulo to P9 million despite an increase in sales volume.
The WESM acts as the country’s trading floor of electricity.
“In spite of the low WESM price environment, we remain committed to address plant reliability issues fleet-wide,” said EDC senior vice president and chief finance officer Nestor Vasay.
“Investing in the company’s existing asset base is expected to boost cash generation, with the equipment’s improved reliability and output,” Vasay said.
Operating expenses dropped P71 million with the deferral of non-critical projects and the curtailment of business related expenses.
EDC said the expenses were exclusive of the increase in depreciation and amortization expense amounting to P26 million.