Quantcast
Latest Stories

EDC shuts down geothermal plants

Accident pulls shares of Lopez firms lower

By

ENERGY Development Corp. has temporarily shut down the 110-megawatt Bacon-Manito geothermal plants in Albay and Sorsogon, only days after they resumed operations.

In a disclosure to the Philippine Stock Exchange Friday, EDC reported that it had shut down the 55-MW Unit 2 of BacMan I after a turbine blade was sheared off, causing damage to the unit.

“We recognize the serious nature of this new setback to the BacMan Unit 2. We will do everything to determine the cause of this problem and to ensure that this is completely resolved at the soonest time possible,” said EDC president Richard B. Tantoco.

In the meantime, EDC also decided to temporarily suspend the operations of the 55-MW Unit 1 of BacMan I, even if the unit did not experience similar problems.

It should be recalled that EDC resumed commercial operations of the BacMan facilities only last Monday.

However, only the BacMan I geothermal facility, which has two 55-MW power units both commissioned in 1993, has been fully rehabilitated. The BacMan II facility, which has only one remaining 20-MW unit from the original two units, was not yet online, Tantoco said earlier.

Stocks of EDC and its parent firm First Gen, as well as those of First Philippine Holdings, took a beating at the Philippine Stock Exchange with the temporary suspension of the BacMan operations. EDC shares fell 11.35 percent to P6.72; First Gen was down 7.98 percent to P24.20 and First Holdings lost 6.95 percent to P105.80.

The resumption of BacMan’s commercial operations would have allowed the facility to finally generate revenues, previously estimated at about P4.3 billion annually. EDC, however, might not hit this targeted annual revenue generation because this estimate assumed 130 MW of generated capacity for a full year, according to Tantoco.

EDC acquired the geothermal complex from the government in 2010, during which the power plants were practically shutdown, with a generating availability of only 3 percent. The target then of the rehabilitation activities, which began in 2010,      was to ramp up the capacity to 130 MW.

The Lopez affiliate believed then that once rehabilitated and operating, the Bacman geothermal facilities could generate strong returns and cash flow from a vertically integrated operation.

EDC remains the biggest producer of geothermal energy in the Philippines, accounting for 62 percent of the total installed geothermal capacity.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: accident , bacon-manito geothermal plants , Business , EDC , shutdown

  • buttones

    I really can’t see the point in having an electricity generating plant that doesn’t actually produce electricity…

  • http://profile.yahoo.com/AND7MQ5FERICDOIAUW56RYT45A tower_of_power

    THIS BIG TIME PANLOLOKO!!! THIS IS HOW THEY INCREASE THE COST OF ELECTRICITY … SUPPLY AND DEMAND DRIVEN DAW … KASI NGA KULANG ANG GENERATION KAYA TATAAS …. SOBRA NA “TONG PANLOLOKO NA ETO!!!!

    THINK ABOUT IT … THEY ARE CHARGING THE CONSUMER THE FULL CAPACITY OF THE PLANTS KAHIT NA DOWN ITO FOR REPAIR OR MAINTENANCE. KAHIT NA ANONG TIPID NG MGA TAO TATAAS PARIN ANG BABAYARAN NILA KASI NGA FULL CAPACITY ANG BINABAYARAN!!!!

  • Jaymar Encarnacion

    tama! opportunity to buy.. :)

  • http://pulse.yahoo.com/_OJWHBJLMWPTRUOZMN6JOMHLO2A Banana Na

    ang bacman 1 naman ay nag-resumed lang ng operation ng last monday at may naging problema sa isang unit nila, pero yung kinita nila last year na 9 billion pesos plus ay di naman kasali ang bacman 1…nataranta ang mga investors kaya next week ay bili ulit sila….haaa

  • UrHONOR

    SUNOD-SUNOD naman ang malas na dumadapo sa TNL na EDC na ‘to…..natagpasan na naman ang hawak ko!

    • Count du Fount de Cakes

      :) Hahaha! magkaiba tayo ng prinsipyo. Eto yung inaantay ko… opportunity to buy! My prayers have been answered.

      • UrHONOR

        Ang natapyasan ay yong kita ko…..sa 5.5, hawak ko na yang EDC.  Paper loss/reduction on profit. For newcomers, wait till the dust settles….rehab of the damaged turbine will take sometime and it the estimated addl income.  Meanwhile, I think it has run its course. Ang dami-daming kapalit ng mga nag-ro-rotate na issues,  Pero kung long-termer ka at walang paggagamitan ng pondo like short-term trading, it might be a good idea to park your funds in EDC.  But for trading, DNL, which I have been harping on since it was 5.75 is a good cnadidate.  Did well on PG, FLI, FGENG, and GTCAP.

      • Count du Fount de Cakes

        Yup… long-termer nga ako. Nasubukan ko na rin yung mag short-term pero sumuko na ako dahil parang aatakehin ako sa puso sa kakaabang ng presyo.  hehehe

      • UrHONOR

        Well, long-term, I believe you will do well.  Ang dami ding foreign funds na nakababad sa EDC.  Anyway, it declares cash div regularly. Depending on your entry point, you might even get a yield greater than the SMA that has been tapered almost on a regular basis for the past months.  Mahirap ang day-trading sa Rp dahil ang laki ng comm at ang daling taxes na kinakaltas….sa US, like Scottrade, $7.99 lang one way regardless of volume.  Ilang galaw lang, pwede ka ng lumabas.  Sa PH, medyo matatagalan kung mabagal ang galaw…almost 2% round trip ang BEP.  At any rate, GOOD LUCK on your picks.  GLO is another keeper.
         

      • Count du Fount de Cakes

        Nagi-ipon pa ako ng pambili ng GLO. BDO muna inaaccumulate ngayon. Next will probably be ANS.

      • UrHONOR

        You’ve got a good plan for yourself.  Pinaglaruan ko yang BDO and BPI from 45 to 60…in and our numerous times.  Dati naghahabulan yang BDO at BPI sa pataasan at pababaan.  Then all of sudden BPI pulled up and left BDO in the dust.  Now BDO is slowly catching up but a bit pricey considering it moves at a snail’s pace.  Buti pa ang GTCAP, mataas na nga, pero great mover!  Here’s a suggestion:  I surmise that you are still young, patient, and have a regular flow of income…..start your own fund with the PSEI blue chips.



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • 22 houses destroyed, 3 hurt as violent wind storm hits village
  • 242 out of 438 pass board tests for chemical engineers
  • Reckless driver endangered lives of Aquino, entourage–report
  • 5 OFWs from Negros quarantined for MERS-CoV tests
  • Release of village chief’s truck caught carrying illegal logs slammed
  • Sports

  • Alaska takes quarterfinals opener over San Mig Coffee
  • Jackson finds second wind to push Meralco past Rain or Shine
  • NLEX fights off Derulo Accelero to remain unbeaten
  • Mayweather diehard Bieber eats pride, poses with Pacquiao for photo op
  • Power Pinays rip Singapore to enter quarters in Asian volley tilt
  • Lifestyle

  • Miss America: Don’t suspend teen over prom invite
  • Transitions and resurrection in the performing arts
  • ‘Archaeology tour’ of Cebu’s heritage of faith
  • Historic Fort Bonifacio tunnel converted into a septic tank
  • ‘Imports’ from London, and play of the year
  • Entertainment

  • Arrest warrants out vs. Deniece Cornejo, Cedric Lee, et al over serious illegal detention
  • Lindsay Lohan says she had a miscarriage
  • Discovery network cancels Everest jump
  • ‘Captain America’ stays strong atop US box office
  • Easter musings
  • Business

  • Oil prices to go up on supply concerns, optimism on US rebound
  • Century Pacific Food sets IPO price at P13.75 per share
  • Oil prices down in quiet Asian trade
  • Asian shares mixed in holiday-thinned trade
  • BDO seen keen on bidding for Cocobank
  • Technology

  • PH has slowest internet in Southeast Asia
  • Nintendo’s trailblazing Game Boy marks 25th anniversary
  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Opinion

  • Gigi’s home
  • Palace stonewalls on MRT inquiry
  • Couple of things too
  • There is plenty of water behind Wawa Dam
  • Triduum thoughts of a young boy
  • Global Nation

  • QC woman who flew in from Middle East tests negative for MERS-CoV
  • DFA, DOH urge OFWs not to panic over MERS-Cov
  • Balikatan could spoil peace talks, says militant group
  • DFA officers hold workshop on aiding human traffic victims
  • Canada in communication with PH on toxic wastes
  • Marketplace