EDC 2017 revenues effected by down-time of Leyte geothermal plants
Energy Development Company reports a drop in revenues for 2017 over 2016, due to down-times of its Leyte geothermal units following an earthquake in July and typhoone in December 2017.
Reported last week, Energy Development Corp. posted a recurring net income of P8.8 billion ($169 million) in 2017, down 4% from 2016 mainly due to calamities that hit Leyte where the company’s geothermal facilities are located.
In a statement, EDC said its consolidated revenue slipped by 3 percent to P33.3 billion ($634 million).
These reductions were due to the 6.5 magnitude earthquake that hit Leyte Island in July 2017 and Typhoon Urduja that struck in December 2017.
“Our Leyte unit, which generated almost 45 percent of our revenue in 2016, was on track for a record year last year until it got struck by two major calamities,” EDC chief financial officer Nestor Vasay said.
“Despite the initial shock from the earthquake in July and from Urduja in December, our team worked hard to successfully restore much-needed electricity to our countrymen in the Visayas region,” he said.
He said EDC was able to restore 40 percent of its pre-quake capacity in Leyte within 10 days after the earthquake, revenue from its largest business unit fell by P800 million ($15 million).
Higher contracted volume allowed EDC’s Bacman geothermal business in Sorsogon to deliver an additional P900 million ($17 million) in revenue, offsetting the lower volume of power generated at its Palinpinon plants in Negros Oriental.
Source: Business Inquirer