EDC used to be a subsidiary of Philippine National Oil Company. It was privatized and sold to First Philippine Holdings Corporation, a Lopez-owned and controlled corporation involved in energy and power supply generation business. In 2013, the company registered consolidated net income attributable to equity holders of the parent of P4.740 billion, lower by 47% than P9.002 billion in 2012. Consolidated revenues decreased by 10% year-on-year to P25.656 billion from P28.369 billion. The attributable net income in 2013 represented 18.5% of total revenue, compared to 31.7% in 2012. Recurring net income attributable to equity holders of the parent decreased by 23% to P6.565 billion from P8.522 billion. EDC booked a P1.261 billion foreign exchange loss due to the depreciation of the peso against the dollar in 2013, compared to a P1.054 billion foreign exchange gain in 2012 when the peso was stronger. EDC recorded a P625 million loss on damaged assets due to Typhoon Yolanda and a P575 million loss on impairment of exploration and evaluation assets in relation to its Cabalian Project in Southern Leyte. The Department of Energy issued in May 2013 the Certificate of Confirmation of Commerciality in favor of EDC’s wind project in Burgos, Ilocos Norte under EDC Burgos Wind Power Corporation. The DoE certificate, the first to be issued by the DoE for a wind project, confirmed the Declaration of Commerciality for EBWPC to develop, operate, and maintain a feasible and viable 87 MW wind power project. The certification converts the Burgos wind farm’s Wind Energy Service Contract issued in 2009 from the exploration/pre-development to development/commercial stage. EDC broke ground in April 2013, after selecting Vestas of Denmark, the world’s largest wind turbine manufacturer, as supplier of the 29 V90-3.0 MW wind turbines. The total cost of the Burgos Wind Farm will be approximately $300 million covering the costs of the wind farm, substation and transmission line. Once operational, the Burgos Wind Farm is expected to generate approximately 233 GWh annually and power over a million households. It will augment the Luzon grid’s dependable capacity which needs an additional 4,200 MW in the next ten years due to the projected 4.5% annual increase in electricity demand.
