Sound Financial Management Amid Business Disruption
EDC is a global diversified renewable power company. As the country’s largest vertically integrated geothermal company, we maintain our leadership in the Philippine renewable energy industry with our portfolio of geothermal, hydropower, solar, and wind power assets.
Our growth agenda is anchored on a) the acquisition of key government geothermal privatization projects; b) development of existing geothermal capacity; c) diversification of our renewable energy portfolio; and d) the establishment of viable operations in Asia, Latin America, and Africa.
Prudent financial management is key to EDC’s operations. Our strong financial position is maintained through healthy cash flows from long-term contract agreements. This allows us to finance the expansion of our portfolio, improve the profitability of energy projects in the pipeline, and provide regular returns to shareholders. We continuously evaluate and improve our treasury, financial, accounting and budgeting systems to tighten fiscal control, and promote corporate governance, and better risk management.
EDC implements an extensive capital expenditure program to maintain optimum availability and reliability of all our power generating assets. This includes upgrading activities, as well as investments in climate-proofing and resiliency.
We comply with corporate governance rules and regulations and submit regular reports as required by the Securities and Exchange Commission and the Philippine Stock Exchange (PSE). To protect the interests of our shareholders, we strictly abide by the PSE’s Trading Rules and Restrictions.
EDC has a nationwide presence, with facilities located in Luzon, Visayas, and Mindanao that have a combined current installed capacity of 1,476.6 MW. Our headquarters are located in Manila, but we hire from the areas where we operate.
Apart from employment, EDC also contributes to the local economies where we operate by engaging with locally-based suppliers. We also work closely with community organizations and cooperatives and implement programs to build their capacity for economic participation. Where possible, we prioritize qualified applicants from our host communities.
We have a diverse customer base, that includes commercial and institutional clients, as well as directly connected customers. We also provide power to electric cooperatives, who in turn supply to commercial, residential, and industrial customers. EDC also provides electricity to retail electricity suppliers.
EDC builds strong and healthy relationships with its customers. We seek to provide them with flexible contract terms, value-added services, and guidance, as they make the transition to renewable energy. We assess and evaluate our performance in delivering energy to our customers and use this to further strengthen and improve our services to them. This helps promote customer satisfaction and retention.
EDC works with a network of suppliers who enable us to run our operations and conduct our activities. The quality of the suppliers we engage has implications on our success.
EDC’s approach to Supply Chain Management involves strategic sourcing and optimized inventory levels to ensure reliable and uninterrupted supply of goods and services necessary for our operations. Vendor accreditation, spend analysis and market studies, and warehousing and logistics are all components of EDC’s supply chain management.
With respect to vendor selection, our decisions are based on price, technical capability, safety practices, and industry expertise. EDC has accreditation requirements with which potential suppliers must comply. Suppliers must also demonstrate their financial capacity to provide the goods and services needed and their long-term business sustainability. In line with our priority on Shared Economic Value, EDC promotes economic inclusion by practicing local purchasing and direct award to qualified locally based suppliers and contractors.
We maintain open and regular lines of communication with our vendors assemblies at each of our business units,, including at our Head Office. We manage and evaluate our performance in this area through regular monitoring and benchmarking, as well as through the practice of internal and external audits.
Our 2020 Integrated Report
Our Integrated Report tells the story of our efforts to achieve our business objectives, hand-in-hand with our sustainability aspirations.