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EDC reports rise in electricity sales due to better geothermal performance

Tongonan, Leyte Geothermal power plant, Philippines
Alexander Richter 17 Nov 2012

Philippine-based Energy Development Corp. (EDC) reports an increase of revenues from the sale of electricity by 21 percent in the first three quarters of 2012 due to better performance of Green Core Geothermal Inc.

Geothermal producer EDC said it had posted a net income of P8.6 billion ($209 million) in the first nine months of 2012, a turnaround from the P488-million ($11 million) net loss it incurred a year ago.

EDC reported that net income attributable to equity holders rose P7.1 billion ($173 million) in the same period, from a net loss of P670.2 million ($16 million) last year.

Total revenue for the nine months ending September 2012 rose by 20.5 percent to P21.95 billion ($534 million) from P18.22 billion ($433 million) in the first nine months of 2011.

According to EDC, the company’s improved financial performance in the first three quarters of the year can be attributed mainly to higher electricity revenues of its subsidiaries. Also, last year’s level was lower because of the P5-billion impairment loss on the property plant and equipment of the 49-megawatt Northern Negros Geothermal power facility, which was recognized in June 2011.

NNGP was shut down last year due mainly to a mismatch in the geothermal resources in the area and the facility’s generation capacity. The equipment will be moved to another area on the island that can support a higher generation capacity, while a smaller facility may be put in place of the NNGP.

Revenue from the sale of electricity rose by 21 percent to P21.4 billion ($521 million) in the first three quarters of 2012 from P17.7 billion ($430 million) in the same period a year ago due to the better performance of Green Core Geothermal Inc., which manages the 305-MW Palinpinon-Tongonan power plants and FG Hydro.”

Source: Business Inquirer