REDC's profit jumps 30% despite El Niño
At A Glance
- Repower Energy Development Corp. (REDC), the hydroelectric power unit of Pure Energy Holdings Corp. (PEHC), achieved strong growth in net income in the first nine months of the year despite the adverse effects of El Niño.<br>REDC's profit increased by 31 percent to P141.6 million in January to September compared to P107.7 million in the same period last year.<br>In the quarter ending September, the company's net income grew 5.5 percent to P45.87 million from P43.47 million in the previous year.<br>Revenues reached P329.6 million at end-September, a 29 percent increase compared to P254.7 million last year.<br>The strong performance was attributed to the current portfolio and new operating capacity of run-of-river hydropower plants, as well as the company's ability to continue operating despite the dry season.<br>The hydroelectric systems generate power by utilizing flowing water within specific areas.<br>The increase in profitability was also due to an increase in power generation across REDC's portfolio.<br>REDC's power generation in the third quarter reached 19.376 million kilowatt hours (kWh) compared to 17.036 million kWh last year.
Despite the adverse effects of El Niño, Repower Energy Development Corp. (REDC), the hydroelectric power unit of Pure Energy Holdings Corp. (PEHC), posted strong growth in net income in the first nine months of the year.
In a statement, the REDC reported that its profit increased by 31 percent to P141.6 million in January to September this year from the P107.7 million in the same period last year.
In the quarter ending September alone, the company’s net income grew 5.5 percent to P45.87 million from P43.47 million in the previous year.
Revenues amounted to P329.6 million at end-September, higher by 29 percent compared to P254.7 million last year.
According to the energy firm, the increased was garnered due to the strong performance from its current portfolio and the new operating capacity of run-of-river hydropower plants, and it was able to continue operating despite the dry season.
The hydroelectric systems get their energy from flowing water to generate power within the specific areas.
“The increase in profitability can also be attributed to an increase in power generation across its portfolio,” said the company.
The REDC’s power generation in the third quarter was recorded at 19.376 million kilowatt hours (kWh) from 17.036 m kWh last year.
This was due to the performance of the energy company’s existing plants and the initial operations of the Tibag hydropower plant which was exporting 5.8 megawatts (MW) of power to the grid last June.
Furthermore, this new run-of-river hydropower plant is expected to boost its income further through its full operations, as per the company’s deliverables listed in July 2022.
Eric Peter Roxas, President of the REDC said that their financial results reflect the current trend being experienced throughout the years.
“REDC’s net income for this fiscal period reflects the returns on the investments we have made to expand our portfolio across the country,” he expressed.
The energy corp also hopes to record a net income close to P250 million by this year and projects a larger sum of P450 million by 2024.
REDC chief shared the plans to expand the portfolio across other provinces that can bolster the potential growth of their development.
“The addition of our newest plant in Quezon reflects our continued commitment to uplift living standards of communities and taking advantage of opportunities available to us,” he said.
“Moving forward, in the years to come, we will strengthen our presence in the markets we operate in– such as Quezon, Bicol, Laguna, and Bukidnon,” he added. (Gabriell Christel Galang)