EDC 2014 SR (UPDATED)

EDC 2014 Performance Report
2014 may be viewed as the year when
your company started reaping the sweet
fruits of the sensible investments that “it made through the years.
”
2014 Financial Highlights
A number of events contributed to
the phenomenal financial results for
2014. Among others is the full-year
operation of our Bacman facility,
which provided an additional ₱3.0
billion to this year’s revenues, the
partial commercial operation of both
our Nasulo and Burgos projects that
added their combined revenues of
₱0.9 billion, with the Nasulo operation
also resulting in the net impairment
recovery of ₱1.8 billion from previously
written-off values in Northern Negros.
To add to that, we also included
insurance proceeds amounting to
₱0.6 billion, representing the partial
collection of our insurance claims that
arose from past events that included
Typhoons Yolanda, Sendong, and
Glenda.
Revenues in 2014 reached ₱30.9
billion, representing a 20% growth
from last year’s ₱25.7 billion. With the
exception of First Gen Hydro Power
Corporation, whose revenues for
2014 of ₱1.6 billion were lower by
₱0.9 billion compared to the previous
year, all our business units contributed
positively to this year’s higher
revenues. Starting with our Bacman
Geothermal Business Unit (BGBU)
that yielded revenues of ₱3.0 billion,
25.7
Revenues
(in ₱ billion)
20%
30.9
our LGBU that increased its revenues
from ₱13.9 billion a year ago to ₱15.6
billion in 2014, and our Negros Island
Geothermal Business Unit (NIGBU)
that likewise improved its revenues by
₱0.9 billion mainly on account of the
operations of the Nasulo project. And
for the first time in many years, our
Mount Apo Geothermal Business Unit
(MAGBU) in Mindanao has effectively
addressed its steam production
issues, which not only eliminated its
perennial revenues shortfall but has,
in fact, surpassed last year’s revenues
by ₱0.5 billion, from ₱1.9 billion to
₱2.4 billion in 2014.
Following the improving trend in our
revenues, our recurring net income
(RNI) attributable to EDC also showed
2013 2014
RNI attributable to EDC
(in ₱ billion)
6.6
40%
9.2
a remarkable 40% jump from ₱6.6
billion in 2013, to ₱9.2 billion this
year. Again, the biggest contributor
to this year’s RNI is our BGBU at ₱1.9
billion, followed by LGBU with a ₱0.6
billion improvement on its RNI while
our NIGBU and MAGBU contributed
a combined ₱0.2 billion improvement
in their respective RNIs.
The 2014 operations also showed
a stronger contribution margin
from each of the business units—the
yardstick by which we measure their
individual financial performance.
LGBU improved its contribution
margin by ₱1.1 billion, from ₱9.0
billion last year to ₱10.1 billion this
year while NIGBU and MAGBU
increased their contribution margins
29