EDC profit nearly doubles to P2.71B in Q1

MANILA, Philippines - Lopez-led Energy Development Corp. (EDC) almost doubled its profit in the first quarter on the back of better performance of subsidiaries and lower operating costs.

In a statement, EDC said its net income surged 96 percent to P2.71 billion from P1.38 billion in the same period last year.

“The improvement was mainly driven by the increased revenue contribution and lower operating costs from the company’s subsidiaries,” EDC said.

Specifically, EDC said units Green Core Geothermal Inc. (GCGI) and FG Hydro Power Corp. (FG Hydro) contributed an additional P700 million and P600 million, respectively, to the company’s net income.

GCGI operates the 305-megawatt (MW) Palinpinon-Tongonan power plants in Negros Oriental and Leyte while FG Hydro owns the 132-MW Pantabangan-Masiway power plants in Nueva Ecija.

EDC said the increased revenues from GCGI came from supply contracts that became effective in the middle of last year.

“Meanwhile, FG Hydro continues to post strong earnings due to higher energy sales and offtake from contingency and dispatchable reserves,” it added.

EDC president and chief operating officer Richard B. Tantoco said investments in Tongonan and Palinpinon power plants have started to yield better results.

EDC is the world’s largest integrated producer of geothermal power. It is into the exploration, development and optimization of geothermal fields, as well as the operation and maintenance of the geothermal power plants with an aggregate capacity of 1,130 MW.

Aside from geothermal projects, the company also owns and operates the 132-MW Pantabangan-Masiway hydroelectric plants and has investments in wind energy projects in Ilocos Norte and other provinces.

“Our hydro asset [Pantabangan-Masiway] is also performing exceptionally well this year, thanks to the high water levels stored in the reservoir,” Tantoco said.

For this year, the Lopez-led energy firm is looking at growing its earnings by more than 11 times to P7 billion from P615 million last year as it completes the rehabilitation of the 150-MW Bacon-Manito geothermal plant in Bicol.

EDC has allotted P20 billion for capital expenditures this year for wind projects and general corporate purposes.