MANILA, Philippines—Energy Development Corp., the country’s biggest producer of geothermal energy, posted a 31-percent increase in its net income to P4.4 billion as of end-2010 from the previous year’s level.
In a statement, EDC said the profit growth could be attributed to the revenue generated by its power generation subsidiary, Green Core Geothermal Inc. (GCGI), which operates the 112.5-MW Tongonan 1 and 192.5-MW Palinpinon geothermal power plants in Leyte and Negros Oriental, respectively.
The Lopez-led firm also reported that its gross revenue from the sale of consolidated steam and electricity rose by 27 percent to P24.2 billion as of end-2010. This was despite a decline in the volume sold during the year, amounting to 7,548.6 gigawatt-hours.
Electricity sales formed the bulk of the revenue at P22.9 billion (6,883 gWh).
Last year, EDC posted P19 billion in gross revenue from the sale of 8,214.2 gWh of steam and electricity.
EDC said its recurring net income of P7.2 billion was slightly lower than the previous year’s P7.3 billion mainly due to higher depreciation cost.
“The consistent upward trend in our income results is the product of our two-pronged strategy of driving growth and managing risks,” said EDC president and COO Richard B. Tantoco.
“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 reduced our exposure to the movements of the Japanese yen,” Tantoco said.
EDC’s hydroelectric power plants in Pantabangan, Nueva Ecija, contributed P2.1 billion in electricity revenue, representing the 348.5 gWh sold during the period. This was 71.5 percent higher than the P1.2 billion in revenues from hydroelectric resources in the previous year.
EDC said the increase was due to the completion of refurbishments and upgrades of the first unit of the hydroelectric power plant, which in turn, increased its power generation capacity by 10 megawatts.
“We have embarked on a capital expenditure program that will achieve optimum availability and reliability for all our operating steam fields and power generating assets,” Tantoco said.
“We have also programmed the commissioning of the Bacman power plants by June. These investments will certainly sustain the gains we achieved last year and continue yielding more value for our shareholders,” he added.