Philippine Daily Inquirer 2:48 AM | Saturday, November 15th, 2014
Riza T. Olchondra
With an incentive scheme for renewable energy development under way, Lopez-led Energy Development Corp. (EDC) sees its 150-megawatt (MW) Burgos wind project contributing to a banner year in 2015.
EDC president and COO Richard Tantoco said in a briefing that the company could chalk up revenue of P32 billion in 2015 with Burgos contributing 10 percent of that. With the equivalent of P20.2 billion invested in Burgos, it is EDC’s single largest investment so far. EDC took on some P14 billion in financing for the project.
“The revenue may be about P32 billion. Burgos, on average, will bring in around P2.8 to 3.2 billion, so let’s say about P3 billion. But we have huge capex (capital expenditure). The depreciation is huge. Our interest costs alone are about P890 million,” Tantoco said.
His comments on the sidelines of the ceremonial signing of the financing deal for Burgos reflect affirmed earlier expectations that EDC will book record earnings in 2015 as rehabilitated and new power facilities go into full operation.
The Burgos wind project was commissioned last Nov. 5 and has been nominated for qualification under the Feed-in-Tariff. If accredited, EDC will be assured of fixed rates for the power it produces over the long term and priority dispatch in the energy market.
While 2014 is expected to be a “very good” year for the company but the full impact of new projects will only be felt in 2015, when three projects are expected to bring in some P8.3 billion in revenue.
Besides the wind project in Burgos, EDC’s Bacon-Manito geothermal project is expected to bring in about P4.5 billion and the Nasulo geothermal project, about P1 billion in terms of revenue.
EDC’s best year so far was 2012, when the company booked some P29 billion in revenue and about P10 billion in income. source
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