Corporate News

Singaporean state firm invests in geothermal energy developer

Posted on September 07, 2013

SINGAPORE STATE FIRM GIC Private Limited (GIC) has acquired more than 5% of Energy Development Corp. (EDC) through several transactions from July to August, the Lopez-led firm said in a disclosure on Friday.

A document attached to the disclosure showed that GIC -- through transactions from July 1 to Aug. 30 -- had accumulated a total of 942,774,249 shares equivalent to 5.0281% of the total common shares issued by EDC. These shares are held in the central depository and registered in the name of PCD Nominee Corp.

"The securities were acquired for purpose of investment. GIC has no plans or proposal to take control of the registrant," the document read.

GIC, a company fully owned by the Singaporean government, was incorporated in 1981 to manage state investments in order "to preserve and enhance Singapore’s foreign reserves", according to the company’s Web site. It manages approximately $100 billion worth of assets like equities, real estate and natural resources in over 40 countries.

Meanwhile, EDC is the largest producer of geothermal energy in the Philippines. The firm currently operates 12 power facilities in five geothermal service contract areas in the country, including the 192.5-megawatt (MW) Palinpinon plant in Negros Oriental and 112.5-MW Tongonan plant in Leyte.

Through First Gen Hydro Power Corp., EDC also operates the 132-MW Pantabangan- Masiway hydro power plant in Nueva Ecija.

Moreover, it is building the 87-MW Burgos wind power project in Ilocos Norte, which is expected to be operational next year.

EDS has also partnered with Canada-based Alterra Power Corp. and Australian firm Hot Rock Ltd. for several geothermal projects in Chile and Peru.

Its net income fell 32.9% to P3.8 billion in the first half from P5.7 billion in the same six months last year due to a one-time P800-million foreign exchange loss. In the same comparative periods, revenues sank by 4.7% to P13.4 billion from the P14.1 billion, while cost of sales and services dropped by 4.2% to P4.6 billion from P4.8 billion.

EDC shares lost two centavos or 0.37% to close P5.39 apiece on Friday from P5.41 each on Thursday. -- CAMCF