EDC turns in record P9.2-B earnings in 2014

MANILA, Philippines - The Energy Development Corp. (EDC), the Lopez-led geothermal and wind energy company, posted a P9.2 billion net income last year, 40 percent higher than the P6.6 billion recorded in 2013.

EDC officials attributed the record high performance to higher electricity rates from the start of commercial operations of the company’s BacMan plants following their lengthy but successful rehabilitation.

The BacMan plant in Bicol consists of three power generators, specifically Unit 1 (55 MW), Unit 2 (55 MW) and Unit 3 (20 MW), according to data from EDC.

The plants are now operational after more than a year of delay due to breach of contract on the part of contractors tapped to rehabilitate the facility.

“The timely commissioning of the Nasulo geothermal project also significantly contributed to the record high income,” EDC said.

In September last year, EDC commissioned the 49.4 megawatt Nasulo geothermal project in Valencia, Negros Oriental.  The project, which is targeted to commence operations in 2016, will help augment power supply in the Visayas region.

In its report, EDC said consolidated revenues reached P30.9 billion last year, up by P5.2 billion, or 20 percent from the P25.7 billion poster in 2013.

EDC attributed more than half of the increase to BacMan, at P2.8 billion.

Aside from BacMan and Nasulo, the commissioning of the Burgos Wind Farm also contributed to the revenue stream, EDC said.

“The successful commissioning of both the Nasulo power plant and the Burgos Wind project also added revenues amounting to P0.7 billion and P0.2 billion, respectively. P0.5 billion in higher electricity sales was also reported for Mindanao, mainly due to the absence of any shortfall adjustments,” EDC said.

EDC president and chief operating officer Richard Tantoco said the geothermal company is reaping the benefits of the rehabilitation of the BacMan plant as well as its investments in other plants.

“We are now realizing the benefits from investments made for the Bacman plant rehabilitation works, the 150 MW Burgos wind, and the 49.4MW Nasulo geothermal projects,” Tantoco said.

“Inclusive of non-recurring items, consolidated net income attributable to equity holders of the parent reached P11.7 billion, 149 percent  higher compared to the P4.7 billion recorded in the previous year, primarily driven by the P5.2 billion increase in revenue and the P1.9 billion net recovery on impairment for the Northern Negros Power Plant,” EDC also said.