Energy Development Corporation (EDC) reported a net income of P1.45 billion for the first quarter of the year, down by 61.4% from the P3.77B posted for the same period last year. Core net income also declined by 61% to P1.23B from P3.16B.

“The income result for the quarter is generally in line with our expectation for revenues to decline in the interim mainly due to forgone steam sales for our BacMan project following the acquisition of the power plants in September 2010 and increased costs related to our acquisitions,” said president and COO Richard Tantoco. “…We are a company in transition, in investment mode for the future.”

Also contributing to the drop in income were the lower numbers of FG Hydro due mainly to lower Wholesale Electricity Spot Market price and output due to reservoir level.

The company also incurred higher operating expenses for the period primarily due to increased operations and maintenance expenditures incurred for the rehabilitation of the BacMan steamfield facilities as well as taxes paid for newly acquired assets. “It is necessary to accelerate this to recommissioning the BacMan power plants within the year,” Tantoco said.

EDC, through its subsidiaries Green Core Geothermal Inc. and BacMan Geothermal Inc., acquired the remaining National Power Corporationowned geothermal power plants which source steam from the company’s steamfield assets. With the acquisition, EDC’s steamfield and power plant operations became fully integrated, making its operations more efficient and cost-competitive.