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Steam plant to be taken apart

ENERGY DEVELOPMENT Corp. (EDC), a geothermal plant operator, will disassemble its 49-megawatt (MW) decommissioned facility in Negros Oriental to make better use of $100 million worth of equipment there, possibly in another site elsewhere in the Visayas region, a ranking official yesterday said.
EDC President and Chief Operating Officer Richard B. Tantoco told reporters that EDC will have to modify its Northern Negros Geothermal Power Plant (NNGP) in Bago City, Negros Oriental and downgrade its operating capacity to five to 10 MW so that it remains profitable.

“Because we are committed to delivering power to the Visayas grid, we shall immediately begin to take steps to right size the power plant in NNGP. The size of the plant turbine must match the amount of steam produced,” Mr. Tantoco said, adding that the impending plant transfer was both possible and likely.

EDC is currently looking at locations in Visayas, but preferably in Negros province as well, Mr. Tantoco said without elaborating.

NNGP is being operated at a cost of P800 million, but only rakes in P300 million in income, a net loss of P300 million, EDC Chief Financial Officer Nestor H. Vasay said in the same briefing.

“At $100 million, NNGP is a very valuable piece of equipment, so it would be foolish for the company to leave the asset to rot,” Mr. Tantoco said.

Mr. Vasay added that NNGP has been running below capacity and has already lost P4.8 billion since its first operation in 2007.

According to EDC, experts from New Zealand and US found problems with the current plant location, citing permeability concerns.

EDC is targeting a 220- to 250-MW expansion within two to five years, without any foreseeable fund-raising activity this year, Mr. Vasay said. -- Franz Jonathan G. de la Fuente
The World is a Vampire . . .
EDC to expand geothermal projects overseas

Energy Development Corp. (EDC) may soon be operating 13 concession areas in Chile as part of its overseas expansion program.

EDC president and COO Richard Tantoco said they have also “submitted bids for five other concession areas in Chile" on top of the 13 applications for concession areas there.

The company, an affiliate of the Lopez-led First Gen Corp. is looking to becoming an international geothermal company.

“In 2010, we began to plant the seeds for global expansion in countries like Chile, Kenya and Indonesia and we hope to see these initiatives bear fruit in the next few years," said EDC chairman and CEO Federico Lopez.

In March this year, EDC set up EDC Chile Limitada, a subsidiary in Chile. EDC Chile Limitada is a limited liability company incorporation in Satiago, Chile, that explores, evaluates and extracts minerals or substances to generate geothermal energy.

Tantoco added that EDC is also looking into possible geothermal project areas in Indonesia, where they are also applying for greenfield concession areas.

“In Indonesia, progress has been slower as we continue to explore areas and consider joint venture with holders of concession areas," Tantoco said.

EDC has also received join venture offers from different countries, owing to their 35 year experience in geothermal technology, said Tantoco.

“Here, we will tread carefully and prudently, and work only in jurisdictions with attractive resource and favorable investment environment," he added.

The overseas projects are expected to begin in 2015 or 2016. Tantoco did not give cost estimates of the expansion but said that a geothermal project costs around $4 million per megawatt to develop.

In May this year, EDC posted a decline in net income for the first quarter of 2011 because of lower revenues and higher acquisitions costs, slipping 61.4 percent to P3.77 billion while core net income went down 61 percent to P1.23 billion.

EDC has 1,199 megawatts (MW) of geothermal capacity and 132 MW of hydro installed capacity. The company is also working on an 86 MW wind farm in Northern Luzon. - BC/KBK, GMA News

Source: gmanews.tv

[Image: edc-7-26-111.jpg]
EDC - Potential Bullish 5-0
Chile is the key to P13 stock price haha!
The World is a Vampire . . .
EDC declares Php2.3 billion net loss for 1st half of 2011

Geothermal leader Energy Development Corporation (EDC) reported a net loss of Php2.3 billion for the first half of 2011 down from the Php5.63 billion net income posted for the same period last year. EDC President and COO Richard Tantoco explained that the net loss was largely due to the one time Php5 billion impairment charge for the Northern Negros Geothermal Power Plant (NNGP) in Negros Occidental and the PhP 900.0 Million reduction of steam revenues from Bacman.

In an earlier disclosure, Tantoco said that the impairment charge which is a non-cash loss resulted from the scaling down of the plant’s sustainable capacity to 5MW to 10MW from its previously rated capacity of 49.4MW. He emphasized that the impairment charge will not affect EDC’s ability to declare dividends considering that the company has over Php9 billion in unrestricted Retained Earnings. He also revealed that measures were being undertaken to right-size the plant.

Aside from the NNGP impairment charge, the decline in revenues of FG Hydro which operates the Pantabangan-Masiway hydroelectric plant and of the forgone Bacman steam revenues following the plant’s acquisition affected EDC’s income for the first semester. The hydroelectric plants’ lower dispatch for the period coupled with lower Wholesale Electricity Spot Market (WESM) prices have both led to the decline in revenue contribution from FG Hydro.

“We are headed towards the conversion of our NNGP plant into a cash accretive asset.

With the right-sizing initiative, we are putting a stop to the Php800 million yearly cash hemorrhage caused by the plant’s Sub-optimal operations. Some value on the steamfield will likewise be restored once the right sized replacement power plant is put in place,” Tantoco elaborated.

EDC’s recurring net income for the period decreased by 57.8 percent to Php2 billion from Php4.8 billion posted during the first half of 2010. This was mainly due to the decrease in revenues from FG Hydro’s electricity sales, absence of steam sales of Bacman and higher operating expenses mainly attributable to higher operations and maintenance expenses for steam field and power plant facilities in all areas where it operates.

The company’s cash and cash equivalents, meanwhile, increased by 77 percent to Php10.9 billion from the Php6.2 billion posted as of December 31, 2010.

“Our prudent fiscal management continues to boost our credibility to lending institutions and enabled us to fully settle our Yen loan which is now just down to less than 1 percent of our total debts, effectively shielding us from the risks accompanying the volatile Japanese currency,” Tantoco added. EDC settled the Php4.5 billion OECF 21st loan and prepaid the remaining Php228.9 million combined balance of OECF 9th and JBIC 19 th Yen loans.

EDC remains the largest producer of geothermal energy in the Philippines accounting for 62 percent of the total country installed geothermal capacity. Aside from geothermal, EDC also owns and operates the 132-MW Pantabangan-Masiway hydro electric plants and has investments in wind energy projects in Ilocos Norte and other provinces.


kapg nisira 5.8 expect edc to go down pa sa 5.60-5.65 estimated
buy then TP ay 5.8 to 5.9 sa ngaun muna.
Trading stocks using technical analysis can be profitable if you understand the secrets that professional traders know.

i think people stay in this stock for long term... i had held this stock for 4 years. but during those times, i never thought to sell before the correction and re-enter again.

when i retire, this is one of the stocks i'll keep for the dividends and growth. thanks for the news.
The skeleton is out of the closet, now we wait for the good news. Think Bac-Man . . .
The World is a Vampire . . .
(08-20-2011, 11:26 PM)CoolDad Wrote: i think people stay in this stock for long term... i had held this stock for 4 years. but during those times, i never thought to sell before the correction and re-enter again.

when i retire, this is one of the stocks i'll keep for the dividends and growth. thanks for the news.

whats your average price sir?? galing naman.. may dividend na ba c EDC??

when GOD steps in, MIRACLE happens.....

It's more fun in FOREX!!!

mataas yata cash dividends ng EDC. forgot the actual % from stock price. around 5%. big for a divident.

i think i got this for around P4 pesos. i think, i held this for many many years because i was working full-time. too bad, bpitrade (poor service but better)doesn't keep histories that long.

I just sold recently around last month. this company would never lose money because of the guaranteed take it or pay from gov't. something Ramos did. it could only lose money if production goes below 70% which is what happened in negros. thats just 1 plant.

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