EDC reports P488M net loss

ABS-CBN News

Posted at Nov 14 2011 06:09 PM | Updated as of Nov 15 2011 02:09 AM

MANILA, Philippines - Lopez-led Energy Development Corp. (EDC), the country’s largest geothermal energy producer, posted a net loss of P488 million in the first nine months of 2011, reversing its P7.6 million net income a year ago, mainly due to higher expenses.

EDC said its operating expenses rose to P15.97 billion during the period from P10.19 billion last year after it recorded a P5-billion impairment charge in June from the decommissioning of its 49-megawatt Northern Negros geothermal power plant.

In the third quarter alone, EDC had a net income of P1.809 billion, 7% lower than the P1.956 billion it registered in the same period last year.

The company said it also experienced delays in the operation of its Bacman geothermal power plant in the Bicol region, resulting in "foregone revenues from the sale of geothermal steam."

"These are short-term setbacks that we are prepared to endure in exchange for long-term gains. 2011 is a transition year for EDC as we continue to invest heavily in the rehabilitation and upgrading of our power generation assets previously acquired from the government in 2009 and 2010,” EDC president and COO Richard Tantoco said.

Tantoco said they are banking on sustained earnings from two other EDC plants -- Tongonan and Palinpinon -- to end the year "with positive results."