EDC reports a 31 percent increase in 2010 net income

Energy Development Corporation (EDC), the country’s leading producer of geothermal energy, posted a net income of Php4.4 billion, up by 31 percent from the Php3.4 billion reported in 2009.  The increase is primarily attributable to the full year electricity revenues from its power generation subsidiary Green Core Geothermal Inc. (GCGI) which operates the Tongonan and Palinpinon geothermal power plants in Leyte and Negros Oriental, respectively.

Electricity sales from the 6,883 GWh sold amounted to Php22.9 billion accounting for  94.6 percent of EDC’s Php24.2 billion total gross revenues from the consolidated steam and electricity sales volume of 7,548.6 GWh.  As compared to 2009, gross revenue from the sale of steam and electricity increased by Php5.1 billion, or 26.9 percent, from Php19 billion even as sales volume decreased slightly by 665.6 GWh, or 8.1 percent, from 8,214.2 GWh.

The recurring net income of Php7.2 billion was slightly lower than previous year’s Php7.3 billion mainly due to higher depreciation expense following the scope-out of IFRIC 12

“The consistent upward trend in our income results is the product of our two-pronged strategy of driving growth and managing risks.  As we completed our acquisition targets and aggressively pursued growth opportunities both in the domestic and international fronts, we also improved our loan portfolio mix with the settlement of the Miyazawa II loan.  This further reduced our exposure to the movements of Japanese Yen,” EDC President and COO Richard Tantoco explained.

Aside from its geothermal business, EDC’s hydroelectric power plants in Pantabangan, Nueva Ecija contributed Php2.1 billion in electricity revenues from the 348.5 GWh sold.  This is 71.5 percent better than the Php1.2 billion revenues from the previous year due to the completion of refurbishment and upgrade of Unit 1 of the hydroelectric power plant that also increased the power generation capacity by 10 MW.

“We have embarked on a capex program that will achieve optimum availability and reliability for all our operating steamfields and power generating assets.  We have also programmed the commissioning of the Bacman power plants by June this year.  These investments will certainly sustain the gains we achieved last year and continue yielding more value for our shareholders,” Mr. Tantoco added.