Wind energy project gets additional funding

Business World Online

Posted on July 12, 2013 07:12:12 PM

LISTED TRANS-ASIA Oil and Energy Development Corp. has set aside an additional P80 million to finance the construction of a 54-megawatt (MW) wind energy project in San Lorenzo, Guimaras, the company said in a disclosure Friday.

"The corporation shall use the funds for expenses in relation to its investment in a 54 MW wind energy project in San Lorenzo, Guimaras…," the disclosure read.

The amount, coming from stock rights offering (SRO) proceeds last year, adds up to the P116.14 million disbursed on Thursday and the initial P2.83 million released last month to fund the project.

The company raised P1.627 billion from its SRO in November last year.

Based on the company’s 2012 annual report, the wind energy project is estimated to cost around P6.3 billion, of which 70% will be financed by debt and the rest by equity.

Construction is targeted to start within the year and is expected to be completed in 18-20 months.

The report also noted that the facility will have 27 wind turbines each with an installed capacity of 2 MW.

Trans-Asia engages in oil and gas exploration and development, and power generation.

The company’s net income grew nearly fourfold to P164.9 million in the first quarter from P41.8 million in the same period last year. Revenues more than doubled to P431.7 million from P181.3 million, while costs and expenses also doubled to P201.4 million from P80.9 million.

Its shares on Friday closed at P2.38 apiece, unchanged from the day prior. -- C. A. M. C. Feliciano   source