Energy firm secures new hydro contracts

Business World Online
Posted on July 10, 2014 10:35:15 PM

TRANS-ASIA Oil and Energy Development Corp. has secured three new service contracts (SC) involving hydropower projects in Luzon with combined capacity of 320 megawatts (MW), the listed firm said in a disclosure on Thursday.
“The Department of Energy notified us of the award of three hydropower service contracts to Trans-Asia covering certain areas in Pililia, Rizal (300 MW); Ilagan, Isabela (10 MW) and Buguias, Benguet (10 MW),” the company said.

The contracts, Trans-Asia noted, provide for a two-year pre-development stage during which the company intends to evaluate the commercial feasibility of the projects.

“Upon declaration of commerciality, each of the projects shall proceed to the development stage which is valid for 25 years,” the company said.

Trans-Asia engages in power generation through its subsidiaries.

The company, through Trans-Asia Power Generation Corp., is building a 54-MW wind farm in San Lorenzo, Guimaras. The plant is scheduled to be operational late this year.

Through 50%-owned South Luzon Thermal Energy Corp., the company is also building a coal-fired power plant, involving two 135-MW units, in Calaca, Batangas.

The first unit is scheduled to be operational late this year, while the second unit is targeted to go online in 2016.

Trans-Asia also owns and operates a 21-MW diesel plant in La Union through its wholly owned subsidiary CIP II Power Corp.

The company holds a 25% stake in Maibarara Geothermal, Inc. which owns and operates 20-MW geothermal power plant in Sto. Tomas, Batangas.

Trans-Asia is also engaged in oil and gas exploration.

It has a 2.33% stake in SC 6A; 4.22% in SC 6B; and 6.67% in SC 51, all in waters east of Visayas; as well as 6.82% in SC 55 in waters west of Palawan; 6% in SC 69 in Camotes Sea; and 6.10% in SC 14 located in waters northwest of Palawan.

Profit of Trans-Asia fell 33.42% to P109.79 million in the first quarter. Revenues dropped 22.22% to P316.46 million while expenses declined 26.74% to P136.28 million.

The company’s shares lost seven centavos or 2.75% to close at P2.48 apiece on Thursday from P2.55 each on Wednesday. -- Claire-Ann Marie C. Feliciano source