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Move of Northern Negros plant boosts EDC revenues and profits for FirstGen

Move of Northern Negros plant boosts EDC revenues and profits for FirstGen Northern Negros Geothermal Field of EDC, Philippines (source: EDC)
Francisco Rojas 18 Nov 2014

The reversal impairment charges at EDC and the transfer and commissioning of EDC’s shattered Northern Negros Geothermal Plant to a new location are behind the increased revenues.

It seems that the strategic move to relocate the damaged Negros Geothermal Plant from Negros Occidental to Negros Oriental is yielding positive results for FirstGen

Local news detail that profitability at First Gen Corp rose by more than half in the third quarter as its geothermal assets turned in better revenue.

In a financial report, First Gen said net income hit $105.4 million in the July to September period, higher by 73.3 percent than the $60.8 million in the same three months of last year.

For the nine month period ending September, the Lopez-led company’s earnings rose 55.5 percent to $274.9 million from $176.8 million in 2013.

Revenue was flat at $1.5 billion from $1.4 billion in the same nine months of last year. For the third quarter alone, its top line settled at $490.7 million, up 12.9 percent from $434.6 million in 2013.

The Lopez Group’s power generation arm also benefited from other income, which was boosted by the reversal of last year’s $3 million in impairment charges at EDC to $41.2 million in one-time gains.

The turnaround was the result of the transfer and commissioning of EDC’s shattered Northern Negros Geothermal Plant in Negros Occidental to a new site in Negros Oriental.

Source: Interaksyon