MANILA, Philippines - Energy Development Corp. (EDC) said on Wednesday its net income will likely drop "significantly" this year as it expects to book an impairment charge of P5.1 billion ($118 million) after shutting a power plant.
The country's largest geothermal power producer said it would shut a $100 million power plant in the central Philippine province of Negros to avoid incurring more operating losses.
"You can look at net income in two ways. There is the reported net income which will drop significantly, but if you look at cash generation and recurring net income, I think it's flat," EDC president Richard Tantoco told reporters after a stockholders' meeting.
The company's net income last year was P4.4 billion.
EDC has been incurring operating losses every month of about P300 million as the plant's output has gone down to only up to 10 megawatts from its original capacity of 49 MW due to insufficient steam production, he said.