Lopez-led EDC earns P2.7-B in Q1

MANILA, Philipines – Lopez-led Energy Development Corp (EDC), the largest geothermal producer in the Philippines, posted a net income of P2.698 billion in the first quarter of 2013, almost exactly the same as the P2.699 billion earned in the same period in 2012.

“The income results for the quarter are generally in line with our expectation for revenues of First Gen Hydro Power Corporation to decline with the increased competition for the ancillary service market and for revenues of GCGI to remain robust and start to pick up with ts growing number of non-insitutional customers,” said EDC president and COO Richard Tantoco.

The slight increase in revenue came from Green Core Geothermal Inc. (GCGI), which offset the drop in First Gen Hydro Power Corp.’s revenue contribution.

GCGI and First Hydro are the project companies for the 305-megawatt (MW) Palinpinon-Tongonan geothermal power plants and the 132MW Pantabangan-Masiway hydro power plants, respectively.

EDC had previously said that it expects steady revenue growth throughout 2013 and the next 4 years despite the setback it suffered with two of its geothermal plants.

“We know there will be steady growth until 2017,” said EDC chief finance officer Nestor Vasay in a previous interview with Rappler. It is banking on new contracts inked by subsidiary Green Core Geothermal Inc. 

On March 1, EDC had to shut down Unit 2 of its BacMan geothermal project in Sorsogon after a turbine blade was sheared off. The company also temporarily stopped the operations of Bacman Unit 1 to give way to an inspection.

The energy company also suffered losses following a landslide in its upper Mahiao plant in Leyte that killed 14.

Vasay said they allotted P32 billion for capital expenditures in 2013, P10 billion higher than the P22 billion they earmarked in 2012.

Recurring net income to equity holder of EDC at P2.578.3 billion posted a 10% increase compared to the P2.344.5 billion a year ago. – Rappler.com