EDC swings to a profit of P5.7b

Manila Standard Today
By Alena Mae S. Flores | Posted on August 15, 2012 | 12:01am 

Energy Development Corp., unit of First Gen Corp., said Tuesday it registered a  net income of P5.7 billion in the first six months of 2012, a reversal of the P2.3-billion loss it posted year-on-year.

The country’s largest geothermal power producer said in a statement revenues from First Gen Hydro Power Corp. and Green Core Geothermal Inc. remained the company’s major income drivers, as electricity sales increased 32 percent to P15 billion from P11.4 billion.

First Gen Hydro operates the 132-MW Pantabangan-Masiway hydro-electric plants while Green Core runs the 305-MW Tongonan and Palinpinon geothermal plants.

Net income attributable to equity holders of the parent company also increased to P4.6 billion from a P2.3-billion loss on year.

Recurring net income jumped 151 percent to P5.04 billion from P2 billion last year, mainly attributable to revenues generated by First Gen Hydro and Green Core.

It said the Bacon-Manito geothermal plants in Albay and Sorsogon were expected to complete their commissioning and reliability runs within the year, in time to  achieve full commercial operation in 2013.

The repair works on the generator rotors of Units 1 and 2 are nearing completion in Alstom’s workshop in Stafford, England. The equipment are expected to be on site by September.

The 20-MW Unit 3 generator is undergoing repair and testing works in the Philippines and is expected to be commissioned by November.

“The logic for our Bacman acquisition has remained unchanged. Once operational, the Bacman Project will generate strong returns and cash flows from a vertically integrated operation as proven by the improvement in Ebitda from our Palinpinon and Tongonan projects,” Energy Development president and chief operating officer Richard Tantoco said.

Energy Development earlier said it was looking at a net income guidance of P6.8 billion to P7 billion this year as the Bacon-Manito geothermal plants in Albay and Sorsogon were expected to contribute revenues to the company later this year.

“The consensus of analysts reports is P6.8 billion to P7 billion for the full year,” Tantoco said.

The company reported a net income of P615 million in 2011, down sharply from P4.4 billion in 2010, due to the P5-billion impairment from the Northern Negros power plant.

Energy Development remains the largest producer of geothermal energy in the Philippines, accounting for 62 percent of the total capacity. It has obtained geothermal concessions in Chile and Peru.    source