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| Energy Development Corporation earns P1,809M |
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Energy Development Corporation (EDC) reported a net income of P1,809 million for the third quarter of 2011, with P1,661M attributable to the equity holders of the parent company. This has reduced its year-todate net loss to P488M, which is primarily attributed to the full impairment of the Northern Negros Geothermal Power Plant (NNGP). In June 2011, EDC recorded a P5-billion impairment charge, a noncash expense, as a result of the decommissioning of its 49-MW power plant. The shutting down of the NNGP finally puts an end to the cash drain that EDC had to incur with the plant’s suboptimal operations.
The P1,809M net income earned in Q3 2011 is 7% lower than the P1,956M net income in the same quarter in 2010 mainly on account of forgone revenues from the sale of geothermal steam due to delays in the recommissioning of the Bacman geothermal power plants. The Bacman power plants are undergoing massive rehabilitation and are expected to achieve commercial operations by end of 2011. “These are short-term setbacks that we are prepared to endure in exchange for long-term gains,” EDC president and COO Richard Tantoco said. “2011 is a transition year for EDC as we continue to invest heavily in the rehabilitation and upgrading of our power generation assets acquired from the government in 2009 and 2010.” Comments (0)
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