High energy use boosts REDC gains

Repower Energy Development Corp. (REDC), a subsidiary of Pure Energy Holdings Corp., saw its first-half net income improve by 7.91 percent to P96.97 million from P89.86 million last year amid a steady power plant performance.

The company said on Friday that its bottom line was pushed up by a 28.16 percent increase in its gross revenues during the first six months, reaching P281.34 million from P219.54 million a year ago.

Steady operations

According to REDC, the growth momentum was particularly fueled by the steady operations of its existing and recently commissioned Tibag and Lower Labayat run-of-the-river mini-hydropower plants.

“REDC’s financial results for the first half of 2024 demonstrate that the company remains on the right track in its goal of expanding its portfolio of run-of-the-river hydropower plants nationwide,” REDC president and CEO Eric Peter Y. Roxas said.

“Moving forward, a critical objective for us will be to continue growing our revenues, while exercising greater control over expenditures, to maximize our profitability for the remainder of the year as well as in 2025,” he added.

During the second quarter alone, the company’s gross sale of electricity increased to P110.83 million from P98.58 million last year.

Gross expenses

However, gross expenses sharply increased to P65.92 million from P46.87 million, with the commissioning of its two new plants.

Gross expenses include workers’ salaries and wages, depreciation and amortization of equipment, and repairs and maintenance of facilities, among others. Operating overhead, on the other hand, remained stable.