ENERGY DEVELOPMENT Corp., the country?s biggest geothermal producer, expects its net income to surge 175 percent to P9.1 billion this year from P3.3 billion it posted in 2009, according to a top company official.
Richard B. Tantoco, president and COO of EDC, told reporters that the profit guidance was based on research analysts? forecast of P8.7 billion to P9.1 billion, which could be achieved barring unforeseen circumstances.
?We are headed close to that,? he added.
Tantoco explained that the surge in this year?s growth could be attributed to an increase in electricity sales that would come from EDC?s power plant acquisitions.
As of end-June, EDC posted a net income of P5.74 billion due to the improved performance of its power plants.
Tantoco explained that electricity sales usually peak within the first half given an increased power demand during the summer season and would then fall and stabilize by the second half.
EDC?s steam field and power plant operations are now fully integrated with the acquisition of the 112.5-megawatt Tongonan 1, 192.5-MW Palinpinon and 150-MW Bacman geothermal power plants from state-run National Power Corp., as well as with the turnover of the 106-MW Mindanao plants by its build-operate-transfer (BOT) partner.
These assets boosted the company?s power portfolio by 88 percent or a total of 561 MW. The Lopez-led firm now has 1,199 MW in power generation assets.
EDC also owns and operates the Unified Leyte plants consisting of the 125-MW Upper Mahiao, 180-MW Mahanagdong, 232-MW Malitbog and the 51-MW optimization plants. These plants were turned over to EDC by its BOT partners at the end of the cooperation period. The auction for the independent power producer administrator (IPPA) contract for Unified Leyte?for which EDC has submitted a bid?has been postponed indefinitely.
EDC currently accounts for 62 percent of the country?s total installed geothermal capacity. Aside from geothermal power facilities, EDC also owns and operates the 122-MW Pantabangan-Masiway hydro electric plants.
