EDC posts US$172m in net income for the 9 months of 2010

EDC posts US$172m in net income for the 9 months of 2010 Bacon-Manito geothermal power plant, Philippines (source: First Gen Corp.)
Alexander Richter 16 Nov 2010

Philippine-based Energy Development Corp. (EDC) reports a US$172m net income for the first nine months of 2010, up more than 400% over last years, mostly based on increased electricity sales through an 88% larger generation portfolio.

Energy Development Corp. (EDC), a leader in geothermal production, posted P7.58 billion (US$172m) in net income in the first nine months of 2010, up 446 percent from P1.39 billion (US$32m) a year earlier.

The company also reported a 26.8 percent increase in core net income to P6.44 billion (US$146m) from P5.08 billion (US$116m) in the same comparable period.

A number of non-recurring items boosted the company’s corporate results, EDC president and COO Richard Tantoco said in a statement Tuesday.

“Over the last 15 months, we had grown our power generation portfolio by some 88 percent, having successfully acquired all of the NPC geothermal power plants EDC has been supplying [with] steam since the 1980s, together with the successful turnover of the Mindanao Plants operated by our BOT Partners since late 1990s,” Tantoco said.

“EDC is presently 100 percent vertically integrated in the different areas where we operate,” Tantoco added.

Also, about P3 billion in deferred tax assessment in 2009 that was written down with the implementation of the Renewable Energy Act and the P1.7 billion in other income for 2010 with the recovery of an impairment provision in the company’s input value added tax claims boosted the corporate results of EDC, according to the statement.

Reported from the Philippines, “In January-September, EDC sold 5,886.3 Gigawatt hours (GWh) of steam and electricity, of which 3,548.3 GWH came from its power plants in Leyte, Northern Negros, and Mindanao. The rest were from the Bacman Geothermal Production Field, Green Core Geothermal Inc., and FG Hydro.

“Our main agenda is to drive growth further, while managing business risks.” Tantoco said.

“We have been successful in reducing third currency risks by redenominating our yen debt to peso,” he explained.

“With the positive results of our operational and financial management, we are confident that we can sustain this momentum for the balance of the year,” he added.”

Source: GMA News