EDC 2014 SR (UPDATED)

EDC 2014 Performance Report
2
RECORD-HIGH CASH FLOW TO DATE
The second building block is our
beginning cash balance of ₱16 billion,
which was further strengthened by
cash generated from operations
amounting to ₱16.9 billion. More
importantly, despite the impact of
Typhoons Yolanda, Glenda, Seniang,
and Ruby on our business, our EBITDA
margin still stood at 58%. This cash
flow is the lifeblood of the company,
with which we will both sustain and
grow the business.
Our cash flows would have been
stronger had it not been for the
impact of the typhoons on our
Bacman and Leyte business units,
which combined made us lose a total
of about ₱1.0 billion in cash revenues.
In response to this clear, present, and
worsening threat, we have brought
serious engineering resources to
bear. We have enhanced our systems
for monitoring tropical depressions
and storms. Most crucially, we are
also improving the resiliency of
our facilities through innovative
engineering starting with the most
vulnerable equipment: the cooling
towers. We commissioned SPX Marley,
maker of 68% of our cooling towers,
to design solutions for our cooling
towers so that these can withstand
typhoon winds up to 300 kilometers
per hour (kph). SPX Marley completed
their designs in 2014 and these will be
installed starting this July 2015.
The return-to-service of our newly rehabilitated Bacman power plants (shown in photo) contributed to
a record–high net income in 2014, together with the successful commissioning of the Nasulo power
plant.
the building housings by adding
100% reinforcements to the structural
supports that hold the metal cladding
in place.
As all these are being executed, we are
also working with one of the world’s
leading wind barrier companies.
These 100-foot tall wind screens that
can withstand up to 300 kph winds
are capable of cutting wind force
by up to 60%, leaving only 40% of
the destructive force to threaten our
facilities. The supplier has been to our
sites and is now engineering solutions
that will be implemented in 2016.
58%
EBITDA Margin
In addition to these, we have gone
ahead and spent on “bunker type”
control rooms which are solid,
waterproof, concrete structures
that will protect all our critical
electronic instrumentation and
control systems. These will have
concrete slab roofing and walls that
virtually enclose the existing control
rooms and will be constructed with
minimum interruption to ongoing
operations. Finally, we also improved
₱16 billion
Cash, beginning
balance
2014
+
₱16.9
billion
Cash from 2014
operations
20
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