THE Energy Development Corp. (EDC) of the Lopez Group will borrow P5 billion from Union Bank of the Philippines to partly finance its capital expenditure (capex) and repay debts.
“We advise the Philippine Stock Exchange [PSE] that the Energy Development Corp. executed a loan agreement with Union Bank of the Philippines for the total amount of P5 billion,” the EDC said.
When sought for further details, EDC Vice President for Finance Erwin Avante said in a text message that the loan will “help us augment covering our cash requirements for the year.”
In particular, Avante cited EDC’s capex for the year of around P14 billion. The company is also eyeing to repay debts. “As you are aware, we have a big capex, and debt service of around P11 billion this year,” Avante said in a text message.
He said the company would tap internal funds to pay for the balance of its requirement. “We have substantial cash balance and, of course, from our operating cash flows.” EDC’s financial position as of end-March this year remained strong with cash balance of P17.85 billion. It maintained a comfortable gearing level with consolidated net debt to equity of 1.17 to 1 and consolidated net debt to earnings before interest, taxes, depreciation and amortization of 2.91 to 1.
EDC owns and operates 12 integrated geothermal-power projects with an installed geothermal capacity of 1,169 megawatts. EDC plans to pursue projects overseas, including opportunities in Latin America and Indonesia. The company’s consolidated recurring net income attributable to equity holders of the parent stood at P2.63 billion for the first quarter of 2016, up 7 percent from the P2.46 billion posted during the same period last year. Inclusive of nonrecurring items, consolidated net income attributable to equity holders of the parent stood at P3.25 billion, 31 percent higher than the P2.49 billion in 2015.