EDC posts 8% income hike

MANILA, Philippines - Lopez-led Energy Development Corp. (EDC) posted a recurring net income of P4.2 billion in the first half of the year, eight percent higher than the year-ago figure of P3.9 billion.

EDC said growth was fueled by the robust the performance of its subsidiary, Green Core Geothermal Inc. (GCGI), owner and operator of the 112.5-megawatt Tongonan and 192.5-MW Palinpinon geothermal power plants.

On the other hand, its reported net income went down 33 percent to P3.8 billion in the first half of the year from P5.7 billion partly due to foreign exchange losses of P800 million.

First half revenues dipped five percent to P13.4 billion from the year ago level of P14.1 billion of account of increased competition for ancillary services market.

However, EDC said the lower revenue contribution from another subsidiary FGHydro was partially offset by the higher contracted revenues by GCGI.

EDC president and chief operating officer Richard Tantoco said the first half results were within expectations.

“The investments to modernize and rehabilitate our acquisitions are paying off. Despite the substantial reduction in the revenues of our hydro investment, GCGI’s robust financial and operating results brought EDC’s margins in line with our expectations,” Tantoco said.

EDC is the largest producer of geothermal energy in the Philippines, accounting for 62 percent of the country’s installed geothermal capacity. 

EDC’s Tongonan plant is situated in Kananga, Leyte while the Palinpinon plants are in Negros Oriental. EDC acquired the two plants in 2009, which at the time were running at 180-MW (Palinpinon) and 84-MW (Tongonan).

EDC has also recently ordered to its wind farm contractor, Vestas, to mark the start of actual construction works in Burgos, Ilocos Norte for the initial 87-MW wind farm, which may be expanded to 150 MW.