EDC posts P9.8 B net income

MANILA, Philippines - The Energy Development Corp. (EDC), the geothermal arm of the Philippine National Oil Company (PNOC), posted a net income of P9.89 billion last year, higher by 89 percent from P5.24 billion last year.

EDC president and chief operating officer Richard Tantoco said the company’s rehabilitation of its power plant acquisitions boosted the company’s income last year.

“Our significant investments in the rehabilitation of our recent power plant acquisitions drove the company’s growth in net income in 2012. Our patient efforts are finally bearing fruit,” Tantoco said.

The company also reported an increase in its electricity sales last year, mainly due to higher revenues and sales to its subsidiaries.

For 2012, EDC’s full year electricity sales increased 16 percent to P28.4 billion from the P24.5 billion generated the previous year.

“Higher contracted revenues by wholly owned subsidiaries Green Core Geothermal, Inc. (GCGI) and ancillary service sales of First Gen Hydro Power Corp. (FGHPC) were the main sources for significant increase,” Tantoco said.

Last week, EDC, a publicly listed company announced the release of P1.5 billion in dividends to its shareholders.

EDC’s board of directors approved a cash dividend of 0.08 centavos per share in favor of preferred shareholders of record as of March 11, 2013, the company said in its disclosure.

The board also approved a cash dividend of eight centavos per share on common shares in favor of common stockholders of record as of March 11, payable on or before April 8.

EDC has set aside an investment of roughly P22 billion for priority capital projects.

 The funds would be used to further strengthen the company’s operations within and outside the Philippines such as in Chile and Peru.

The P22 billion is slightly higher than the programmed P20-billion capital spending of the company last year.