Haberler

EDC reports drop in income due to typhoon last year

Tongonan, Leyte Geothermal power plant, Philippines
Alexander Richter 3 Mar 2014

Energy Development Corp. announces a 46 percent drop in net income, mostly due to the effects to its geothermal operations on Leyte following last year's major Typhoon in the Philippines.

Reported today, Energy Development Corp. (EDC) in the Philippines announced “a 46-percent drop in net income to P4.7 billion ($105 million) last year compared with P8.7 billion ($195 million) a year ago.

The geothermal power producer said the profit decline was due to a net loss of P2 billion from forex losses.

“The nonrecurring loss was primarily driven by realignment losses from the volatility in the peso-dollar exchange rate with the P1.3-billion foreign exchange loss in 2013 as compared to the P1.1-billion foreign exchange gain in 2012. Other major nonrecurring items for 2013 include material damage due to Supertyphoon Yolanda amounting to P600 million,” it said.

Last year’s consolidated recurring net income stood at P6.6 billion, down by 20 percent from P8.2 billion posted in the previous year. This was on account of lower energy sales by EDC’s FG Hydro asset.

EDC’s revenues reached P25.7 billion, down by 10 percent, from P28.4 billion in 2012 on account of a revenue drop from FG Hydro by P2.2 billion.

“[The year] 2013 posed unprecedented challenges to EDC. We, however, remained steadfast and have exerted efforts to expedite the energization of the Leyte plants. We remain on track to have the last of the Leyte plants energized by about June 2014,” EDC Executive Vice President Ernesto B. Pantangco said.”

Source: Business Mirror