EDC returns to profit in first half

ABS-CBN News

Posted at Aug 15 2012 04:52 PM | Updated as of Aug 16 2012 04:22 PM

MANILA, Philippines - Energy Development Corp. returned to profit in the first half. The Lopez-controlled company made P5.7 billion in the first half, compared with a P2.3 billion loss a year before.

Sales of the company's hydro power business rose 32% to P15 billion in the January to June period.

Revenues from First Gen Hydro Power Corp., which operates the 132MW Pantabangan-Masiway hydroelectric plants and Green Core Geothermal Inc. which operates the 305MW Tongonan and Palinpinon geothermal plants remain EDC's major income drivers.

Meanwhile, EDC said it expects its Bacman geothermal unit to complete commissioning and reliability runs this year and be fully operational next year.

The Bacman plant will boost EDC's current portfolio of geothermal power generation assets to 1,199 megawatts.

"The logic for our Bacman acquisition has remained unchanged. Once
operational, the Bacman Project will generate strong returns and cash flows from a
vertically integrated operation as proven by the improvement in EBITDA from our
Palinpinon and Tongonan projects," EDC President and COO Richard Tantoco said, in a statement.

EDC remains the largest producer of geothermal energy in the Philippines.