February 28, 2017

EDC posts better-than-expected 2016 results

Energy Development Corp. (EDC) announced it posted a 4% increase in recurring net income to P9.2b in 2016.

Their 4th quarter earnings of 2016 stayed relatively flat YoY at P1.8b.

Revenues fell marginally in 2016 and 4Q16 as depressed spot market prices for Bacman and Nasulo geothermal power plants’ uncontracted capacity offset gains in volume sales.

Both geothermal plants were among the most exposed to last year's record-low electricity spot market prices. These power plants reported a 25% average drop in prices, resulting in a revenue loss of over P1b.

EDC, however, said it has lined up contracts that will cover 100% of Bacman's capacity and almost 80% of Nasulo's as of end-2016.