In a revelation to the Philippine Stock Exchange, Energy Development blamed the profit fall on PHP8.9 billion in losses incurred from revaluation of its foreign-currency loans.
Those losses were partly offset by PHP2 billion in one-time gain from an arbitration award on an issue on contract implementation with the government electricity producer National Power Corp.
Minus nonrecurring items, EDC’s recurring net income amounted to PHP5.5 billion.
Energy Development president and chief executive Paul Aquino said the “fluctuations in the reported net income also resulted from having to mark to market EDC’s liabilities during a very volatile Japanese yen situation.”
In a series of disclosures to the stock exchange, Energy Development said continuing efforts to hedge its currency exposure on its foreign loans. “This is why RNI is used as basis for any dividend declaration,” it said. “RNI is defined as reported net income net of any unrealized foreign exchange loss or gain, among others.”
At a meeting on March 30, 2009, the Energy Development board declared a regular cash dividend of PHP0.125 per share on common shares in favor of stockholders of record as of April 16, 2009. The dividend is payable on May 11, 2009.
