News

EDC doubles net income for 1H of 2010 to US$123m

Bacon-Manito geothermal field, Philippines (source: EDC)
Alexander Richter 24 Jul 2010

Energy Development Corp., Philippine's largest producer of geothermal energy, posted a net profit of P5.74 billion (US$123million) in the first six months of the year, up 114 percent from P2.69 billion (US$56million) year-on-year.

In the Philippines, “Energy Development Corp., an affiliate of First Gen Corp. and the country’s largest producer of geothermal energy, posted a net profit of P5.74 billion (US$123million) in the first six months of the year, up 114 percent from P2.69 billion (US$56million) year-on-year.

Energy Development attributed the favorable financial results to the combined operations of its power plants, which continued to boost the company’s revenues.

“The successful acquisition of National Power Corp.-owned geothermal power plants is an integral component of our forward integration growth strategy,” said Energy Development president and chief operating officer Richard Tantoco.

“Despite investor concerns on the immediate impact of loss steam revenues for the Bacman acquisition, Energy Development’s purchase of the power plant remains to be value-enhancing for the company,” he said.

The company offeredthe highest bid for the 150-megawatts Bacon-Manito geothermal plants in April. It is now rehabilitating the plants to bring them back to full capacity within 18 to 24 months.

“Complementary to this is our initiative to strengthen our balance sheet by re-denominating our loans and smoothening out lumpy maturities,” Tantoco said.

“We are confident that we can sustain this momentum for the balance of the year with the continued seamless integration of the newly acquired plants with their fuel source–steam fields that we have been operating for the past three decades.”

First Gen Hydro, operator of the 122.5-MW Pantabangan-Masiway hydroelectric plants, contributed P1.06 billion to the net income in the first half.”

Source: Manila Standard Today