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EDC increases revenues with better performance of geothermal plants

50 MW geothermal plant, Northern Negros, Philippines (source: Thorndon Cook Power)
Alexander Richter 14 Nov 2019

EDC reports geothermal revenues of $514m for first three quarters of 2019 contributing around 34% of total revenues of its mother company First Gen. Better performance of its Leyte and Negros plants and higher Bacman revenues are key reasons.

In the report on its financial results for the first three quarters of 2019, Philippines First Gen Corp. shares details on its daughter company Energy Development Company. EDC operates renewable energy and geothermal plants in the Philippines. EDC contributed around 30% of total recurring earnings of First Gen in the first three quarters of 2019.

Energy Development Corporation (EDC) contributed recurring earnings from its geothermal, wind, and solar platform of US$67 million (Php3.5 billion) in the first nine months of 2019, better by US$14 million (Php0.7 billion) in comparison to US$52million (Php2.7 billion) in 2018. EDC’s Leyte and Negros geothermal plants performed better due to lower outages and higher average selling prices. Recall that a portion of EDC’s operating assets in Leyte was damaged by Typhoon Urduja in December 2017, which was fully restored in the third quarter of 2018.

EDC’s geothermal, wind and solar revenues accounted for US$547 million (Php28.5 billion) or 34% of First Gen’s total consolidated revenues in the first three quarters of 2019. Of the US$547 million, 94% can be attributed to the geothermal platform while the remainder is from the wind and solar projects. From US$476 million (Php24.8 billion) in the first nine months of 2018, EDC’s revenues improved by US$71 million (Php3.7 billion) mainly due to the performance of its Leyte and Negros plants. This was supplemented by higher Bacman revenues in the first three quarters of 2019, though partially offset by lower revenues from its Mindanao and Burgos plants.

Source: FirstGen release (pdf)