*locked* Energy Development Corp. (DELISTED)

Energy Development Corporation (EDC) was incorporated and registered with the Securities and Exchange Commission on March 5, 1976 to primarily engage in the business of exploring, developing and operating geothermal energy projects in the Philippines. It began commercial operations with the commissioning of its first steamfield in 1983, and expanded to provide geothermal drilling and consultancy services. EDC became a subsidiary of Red Vulcan Holdings Corporation on November 29, 2007. The ultimate parent company of EDC is First Philippine Holdings Corporation.

As of December 31, 2009, EDC operated twelve geothermal steamfields in five geothermal service contract areas where it is principally involved in the production of geothermal steam for sale to the National Power Corporation (NPC) pursuant to steam sales agreements. The Company is also involved in the production of steam for delivery to build-operate-transfer power plants that convert steam to electricity for sale by EDC to NPC pursuant to power purchase agreements. For its third business segment, the Company provides drilling equipment and rig personnel to the Lihir Gold Limited. Lastly, with its acquisition of a 60% equity stake in First Gen Hydro Power Corporation in 2008, EDC is now involved in the operation of hydro power plants.

Source: SEC Form 17-A (2009)

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Local carbon trade lures Aussie firm

SYDNEY -- An Australian firm is looking at providing more project registration services for Philippine renewable energy projects seeking to trade their carbon credits, after bagging a deal with the Lopez group early this year.

Perenia Carbon Pty Ltd., which is looking at getting a slice of the market dominated by European firms, will assist Energy Development Corp. (EDC) in registering its geothermal asset in the Bicol region, which will yield 50,000 CERs or units of certified emission reduction, said Andrew Jauncey, the firm’s financial controller.

EDC, through its public relations office, confirmed this in a text message yesterday.

Under its business model, there are no fees, but the firm will get a share of the carbon credits. In the EDC project, however, Perenia Carbon agreed to collect fees as a consultant, Mr. Jauncey said.

While EDC’s Bicol geothermal asset is old, the project is qualified because the Lopez group will rehabilitate the plant, he said.

“The Philippines is shaping up to be a growth area for Perenia. Twelve months ago, I wouldn’t say that,” Mr. Jauncey said.

There has been a flurry of activity for the past six months in the Philippine renewable energy sector, he noted, citing progress in the setting of feed-in tariffs.

EDC expects slower growth due to pricing, rehabilitation

LOPEZ-LED Energy Development Corp. (EDC) expects modest growth for the second quarter with the moderate pricing in the electricity spot market and the continuing rehabilitation of the 130-megawatt (MW) Bacon-Manito geothermal power plant.

“Our numbers will be fairly modest because with the Bacon-Manito (BacMan) arrangement, we’ve lost P1.8 billion a year on take or pay revenue. I think WESM (Wholesale Electricity Spot Market) has been more moderate this summer which is very good for the consumer. I don’t expect any significant growth this year,” said EDC President and Chief Operating Officer Richard B. Tantoco.

In the first quarter, EDC saw its earnings fall to P1.45 billion from P3.77 billion. The reduced earnings “were driven by the suspension of steam sales to the National Power Corp. for BacMan [geothermal power plant] and the ongoing rehabilitation of its steam fields following the acquisition of the power plants in September 2010.”

We forego completely P1.8 billion in revenues for every 12 months we’re under rehabilitation. We’re expecting the first units to be back sometime in the end of July or the first week of August. Originally, the time frame was within 24 months but we were able to cut it down to 10-11 months,” Mr. Tantoco said. He added that by August the first 55 MW and 20 MW units will be commissioned.

BacMan is located in Bacon, Sorsogon and Manito, Albay. It has a capacity of 150 MW but due to the damage to one of the units last year only 130 MW can be restored.

EDC won the bid for the operations of the power plant last year for $28.5 million. Shares in EDC closed at P6.40 on June 17, down 0.47% from its previous close of P6.43 apiece. -- E. N. J. David

This is a clarification from EDC Disclosure:

"We confirm the P1.8 billion per year revenue loss of the Bacman Power Plants meantime that the individual units are undergoing rehabilitation. The revenue loss corresponds to forgone steam revenues under EDC’s Steam Sales Agreement (SSA) with the National Power Corporation (NPC). Being already owners of the power plants, EDC would have to forgo recognition of steam revenues in exchange for electricity revenues – to be recognized as soon as the different plants are re-commissioned this year."

EDC signs $175-million loan facility

LISTED Energy Development Corp. (EDC), the country’s geothermal giant, signed on Tuesday six-year $175-million transferrable syndicated term loan facility.

In a disclosure to the Philippine Stock Exchange, EDC said the new facility shall effectively refinance an existing $175-million transferrable syndicated term loan maturing on June 17, 2013.

EDC said it expects to achieve closing by end-June 2011.

Mandated lead arrangers and bookrunners of the transaction are Australia and New Zealand Banking Group Ltd. (ANZ), The Bank of Tokyo-Mitsubishi UFJ, Chinatrust Commercial Bank, ING Bank N.V., Maybank Group, Mizuho Corporate Bank Ltd. and Standard Chartered Bank.

EDC said ANZ acted as sole coordinator and documentation bank.

In April EDC said it prepaid part of its P4.124-billion (¥8.1 billion) obligation as part of the debt owed to Japan International Cooperation Agency, as successor institution of the Overseas Economic Cooperation Fund of Japan.

EDC said it only has P276.74 million (¥543.6 million) in outstanding principal debt, representing 0.64 percent of the total loans of the company.

In June last year EDC has settled ¥22 billion of its Miyazawa-II debt.

The payment, according to EDC, has reduced to 13 percent its yen-denominated loans.

During the first half of 2010, EDC had successfully hedged the dollar-yen exposure of its entire ¥22 billion, which has benefited the company about P181.1 million.

The Miyazawa II loan was among the legacy loans which the Philippine National Oil Co.-Energy Development Corp. (PNOC-EDC) carried over into the present-day privatized EDC. It was used to fund the investment and working capital requirements of PNOC-EDC’S operating projects shortly after the Asian Financial Crisis.

The company expects to post improved earnings as it is scheduled to put the BacMan geothermal power plant back online by the second half of the year, which is significantly ahead of schedule.

Upon completion, Tantoco said the BacMan will be able to generate only 130 megawatts (MW), which is 20 MW short of its original generating capacity of 150 MW. One of the generating units reportedly bogged down and was not repaired when the plant was still being operated by the National Power Corp.

Federico Lopez, EDC chairman and chief executive, earlier told reporters that EDC has been accelerating the rehabilitation of BacMan geothermal power plant.

“We’re really rushing the BacMan to make sure it comes online. We target to complete the rehabilitation of the BacMan in 18 to 24 months.

Lopez quickly added that they are trying to push it closer to the 18-month target or even earlier.

June 23, 2011 - Philippine Stock Market Update

Utilities sector

Energy Development Corp: Still a good recovery play

What’s New

- Revised profit forecasts on Energy Development Corp (EDC) to take into account the revised schedule of completion of the 130‐MW Bacon‐Manito (BacMan) geothermal power plant.

-Also adjusted interest expense forecasts with the successful refinancing of EDC’s existing US$175m long‐term loan due in 2013.

Read more….

EDC to start wind power project this year

Energy Development Corp., the country’s biggest producer of geothermal energy, may finally start within the year its planned 86-megawatt wind power project in Burgos, Ilocos Norte, as it anticipates the issuance of the much-awaited feed-in-tariff rates.

“Should the feed-in-tariff rate for wind gets approved, we will move on the Burgos project immediately. All we’re waiting for is the final FIT rates—the project is pretty much good to go,” said EDC president Richard B. Tantoco.

“The Burgos wind farm project is a fully funded business plan, so we’re good [in terms of financing],” Tantoco added.

EDC closes $175 million loan deal to fund its growth projects, capex, debt servicing requirements and other purposes.

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