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.
The Energy Development Corporation (EDC) is a pioneer in generating 100% clean, renewable, and reliable power as an electricity supplier in the Philippines for over 40 years. With power plants all over Visayas and Mindanao, the company is one of the biggest producers of geothermal energy in Asia and is expanding its reach in the international market, allowing it to offer customers affordable energy rates. EDC also strives to provide the best customer service it can to all its clients by having helpful salespeople and easy to understand contracts. Because of all of this, it is poised to become the premier supplier of electricity for the Philippines’ Green Energy Option Program. EDC takes its mission as a renewable energy provider seriously and goes beyond sustainability by investing in programs that enhance the environment and empower its partner communities, thereby fostering regenerative development. The company has also been working toward being carbon-neutral by improving its energy efficiency, as well as implementing various greening projects to ensure that its mission to provide future generations with a better life remains intact.