EDC allots $46.5 million for overseas projects

Business Mirror

Published on Tuesday, 07 May 2013 19:53

Written by Lenie Lectura / Reporter

ENERGY Development Corp. (EDC), the largest producer of geothermal energy in the country, is earmarking $46.5 million until next year to conduct exploration and drilling activities overseas.

EDC currently holds geothermal exploration concessions in Chile and Peru.  It is also in talks with an Indonesian exploration firm for a joint venture to explore two possible sites in Indonesia.

“Normally, we get offers from the US but [these are] too small so we’d normally look at the Pacific rim. We would rather go for the big ones,” said EDC President and Chief Operating Officer Richard Tantoco in a press briefing on Tuesday.

Kenya, he added, is also being considered. “We are looking at Kenya but with a lot of caution…[there is] nothing firm yet.”

This year, EDC is allocating $2.5 million, roughly P100 million, for geophysical work and then $40 million next year to bankroll various drilling activities overseas. “We will be sending teams this year in those countries then by next year we hope to be able to start drilling wells,” added Tantoco.

In Chile, EDC plans to drill up to three wells, each costing $9 million. In Indonesia, Tantoco said, EDC is looking at two possible sites. 

EDC’s first-quarter net income at end-March remain unchanged from the previous year’s level at P2.7 billion. 

“The income results for the quarter are generally in line with our expectation for revenues of First Hydro Power Corp. to decline with the increased competition for the ancillary services market and for revenues of Green Core Geothermal Inc. [GCGI] to remain robust and start to pick up with its growing number of non-institutional customers,” Tantoco said. 

EDC’s earnings performance resulted from the increased contribution from GCGI which offset the drop in First Gen Hydro Power Corp.’s revenue input.  source