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WEDNESDAY, 09 MAY 2012 20:05 PAUL ANTHONY A. ISLA / REPORTER
GEOTHERMAL producer Energy Development Corp. (EDC) said on Wednesday it expects a better financial performance this year compared with that of last year.
In a press conference after its annual stockholders’ meeting, President Richard Tantoco said net income forecast is between P6.8 billion and P7 billion, much higher than the P615 million posted in 2011.
Tantoco attributed the forecast to the scheduled decommissioning of the Bacon-Manito (BacMan) geothermal power plants before the end of the year. “The consensus of analysts is P6.8 billion to P7 billion for the full year,” he added.
It will be recalled that EDC’s net income last year dropped to P615 million from P4.4 billion in 2010 due to the P5 billion impairment from the Northern Negros geothermal power plant. “In 2011, we had two major issues. One of that will partially be there, and the foregone income from BacMan,” Tantoco said.
EDC also incurred losses amounting to P1.2 billion from steam field revenues from the BacMan power plant. The BacMan geothermal complex has a dependable capacity of 130-MW, but has not been operating since last year.
EDC said they expect to complete the rehabilitation of the plants by the third quarter.
“Ultimately, one of drivers of growth this year is BacMan, which will run for about a quarter because one unit of Bacman running now,” he said.
He further noted that they also expect P1 billion in revenues from the supply contracts signed by Green Core Geothermal Inc. with electric cooperatives.
EDC has planned a capital expenditure of P20 billion this year, of which around P6 billion has been allocated for the 86-megawatt Burgos wind project.
Tantoco said the company will finance its capital expenditure program with internally generated funds. “We have around P10 billion in cash, and we do not need additional funding this year,” Tantoco said.
The company has also set aside P14 billion for internal projects, P1.4 billion for the Bac-Man rehabilitation, P500 million for Green Core capital expenditure, P2 billion for the acquisition of two new geothermal exploration rigs, P2.2 billion for the replacement of new wells, and funding for the Northern Negros geothermal project to Nasulo in southern Negros.
“Today, we are reviewing technologies available for Northern Negros. And for Nasulo, we have two adjacent wells that are drilled over that could produce 45-megawatts [MW] but the installed capacity is only 20 MW, which is an additional capacity for Green Core to sell,” he said.
Tantoco said the company plans to add 230 MW from its existing geothermal projects within the next five years.
In the next five years, Tantoco said they target to complete the 20-MW Nasulo power project and the 40-MW Dauin geothermal facility in Negros Oriental, the 50-MW Mindanao 3 project in Cotabato, 30-MW Cabalian plant in Southern Leyte, and the 40-MW BacMan 3 geothermal power project and the 50-MW Kayabon geothermal power project in Sorsogon.
“Our domestic expansion projects have total estimated capacity of 230 MW spread across several modest sized projects,” he said.
Tantoco said the company is also actively pursuing overseas projects in Chile, Peru and Indonesia.
EDC earlier said it is also looking at opportunities to develop geothermal projects in Indonesia, Kenya and Peru.
EDC is the world’s largest integrated producer of geothermal power and the acknowledged global leader in wet steam technology. EDC is engaged in 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. source
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