EDC's 9-mo net profit declines by 7.7%

Nov 7, 2013 - Philippine's Energy Development Corp (PSE:EDC), or EDC, today said its recurring net profit for the first nine months of 2013 had contracted by 7.7% on the year to PHP 5.8 billion (USD 134m/EUR 100m).

The company explained that the fall was mainly the result of weaker ancillary revenues from its hydropower assets. When one-off items, such as foreign currency losses, are added to the bottom line result, it arrives at PHP 5.3 billion, or below the year-ago result of PHP 7.1 billion.

EDC’s nine-month revenue also declined by 7.7% to PHP 19.8 billion due to a decrease in hydro ancillary services income and lower revenues from other operating assets. These effects were in part compensated for by a PHP-600-million rise in the top line result of its geothermal unit Green Core Geothermal Inc.

At the end of September, EDC had PHP 18.2 billion in cash. It said it had “adequate capacity” to go ahead with its growth strategy for this and next year. The company expects to commission the 87-Mw Burgos wind farm and the 40-MW Nasulo geothermal plant in 2014.

(PHP 10 = USD 0.231/EUR 0.173)

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