EDC positive on growth

MANILA, Philippines - Energy Development Corp. (EDC) expects steady revenue growth in 2013 and the next 4 years, despite suffering setbacks in two of its geothermal plants.

EDC, the energy arm of the Lopez group, expects P30 billion in revenues this year, 15% more than its P26 billion revenues in 2012.

"We know there will be steady growth until 2017," said EDC chief finance officer Nestor Vasay.

Driving growth are new contracts inked by subsidiary Geen Core Geothermal Inc.

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

A little over P11 billion of the capex will go to the Burgos wind farm project, seen to be the country's biggest once it becomes operational in 2014. 

EDC recently entered into a $300-million contract with Denmark-based Vestas Wind Systems to start its foray into wind power. 

The new contract is a plus for EDC, which shut down Unit 2 of its Bacman geothermal project in Sorsogon on March 1 after a turbine blade was sheared off. 

The company also temporarily stopped the operations of Bacman Unit 1 to give way to an inspection.

EDC also has to deal with a landslide in its upper Mahiao plant in Leyte. As of Sunday, a total of 6 bodies were retrieved from the landslide, which was triggered by two weeks of rain. Eight workers remain missing.

The 125-megawatt upper Mahiao plant is part of EDC's Leyte Geothermal Production Field, the world’s largest wet steam field.

EDC and the Leyte local government dispatched an emergency response team on March 2 to search for other workers. - Rappler.com