EDC raises profit target to P1.1B

The Energy Development Corp. (EDC) of state-owned Philippine National Oil Co. (PNOC) has revised its income target for this year to P1.1 billion from an earlier programmed P1 billion.

"We have already exceeded the P1-billion mark in the first nine months of the year," EDC chairman and president Sergio Apostol said. He said they expect to further improve the company’s earnings in 2004 as the company lines up new power projects.

"Next year, we will have to work harder in putting up new power plants in the country. We are hard-pressed since we will be the only power generation company that can construct new power facilities," he said.

Under a restructured power industry, the National Power Corp. (Napocor), the power generation firm of the government, will no longer be allowed to enter into new power contracts and/or put up new power plants.

Established in 1976, EDC is one of the most profitable subsidiaries of PNOC. It is primarily engaged in the business of developing and operating geothermal energy projects and geothermal-run power projects in the Philippines.

EDC currently operates nine geothermal steamfields, namely, Tongonon I, Palinpinon I and II, Bacman I and II, Leyte-Cebu, Leyte-Luzon, and Mindanao I and II, with an aggregate capacity of 1,149.4 MW.

These steamfields account for 60.3 percent of the total country installed geothermal capacity of 1,905.4 MW. On a total country basis, EDC accounts for 8.6 percent of the total installed power-generating capacity at 13,459 MW and contributes 16.1 percent of the 46,951 GWH total power generated for year 2001.

In 2001, some 7,576 GWH of geothermal steam/electricity displaced an equivalent of 12.6 million barrels of fuel oil for a total foreign exchange savings of $292.9 million (at $23.2/barrel Philippine average import cost of crude oil).

EDC also continues to pursue significant steps to establish a foothold in countries with abundant geothermal resources like Indonesia, Japan, El Salvador, and Papua New Guinea.

In July 2001, the second geothermal drilling services contract with Lihir Management Co. Pty. Ltd. (LMC) of Papua New Guinea was completed. A total of 22 wells were drilled, reworked, and deepened. Out of the 22 wells, five were for de-watering, 15 for steam relief, and two as geothermal wells.