Corporate News

Bacman recommissioning, newer facilities power EDC profit

Posted on March 09, 2015

ENERGY Development Corp. (EDC) clocked a record profit last year, boosted by its recommissioning of the Bacman geothermal plant and as newer facilities, including a wind farm, go online.

THE BACON-MANITO (Bacman) geothermal power facility now dispatches 140 megawatts (MW) to the grid, 10 MW more than initially planned, after a turbine upgrade. Energy Development Corp. had been rehabilitating since 2010 the formerly state-owned asset and recommissioned the plant last year. -- WWW.ENERGY.COM.PH
The Lopez-led power producer in a statement over the weekend said its consolidated net income attributable to parent -- inclusive of non-recurring items -- more than doubled to P11.7 billion from P4.7 billion.

Meanwhile, recurring net income attributable to parent jumped 40% to P9.2 billion last year, from P6.6 billion in 2013.

Erwin O. Avante, EDC vice-president for finance, confirmed via phone that 2014 was a banner year for the company in terms of consolidated net income attributable to parent.

“The record-high performance primarily resulted from electricity sales from the start of commercial operations of its Bacman Plants following their rehabilitation,” the company statement read.

The Bacman geothermal power station straddles Bacon, Sorsogon and Manito, Albay.

Originally composed of two 55-megawatt (MW) plants and a third 20-MW unit, the plant is now running at 140 MW. The higher output came as the company completed earlier this month replacing turbines at its two bigger facilities within the Bacman facility.

Besides the Bacman plant, EDC also said “the timely commissioning of the Nasulo Geothermal Project also significantly contributed to the record high income.”

In September last year, EDC commenced the commercial operations of its 49.4-MW Nasulo geothermal plant in Valencia, Negros Oriental.

The power project serves as the replacement for its 49-MW Northern Negros geothermal plant in Negros Occidental, which was shut down in 2011 due to regressed steam production and impairment losses.

To utilize the plant’s remaining facilities and assets, the EDC board moved to transfer the assets to and operate the new project in Negros Oriental.

In its statement, EDC said consolidated revenues likewise rose 20% to P30.9 billion from P25.7 billion.

The Bacman plant accounted for more than half of the increase with a P2.8-billion contribution.

The Nasulo plant, on the other hand, brought in some P700-million revenues.

Another project, the 150-MW Burgos wind farm, recorded a P200-million share in revenues.

The Burgos project in Ilocos Norte -- which serves as the company’s first venture into wind energy -- was completed late last year.

EDC also saw higher electricity sales from its projects in Mindanao, which recorded P500-million revenue increase “mainly due to the absence of any shortfall adjustments.”

“We are now realizing the benefits from investments made for the Bacman plant rehabilitation works, the 150-MW Burgos wind, and the 49.4-MW Nasulo geothermal projects,” the statement quoted EDC President and Chief Operating Officer Richard B. Tantoco as saying.

The company also noted the return to service of Yolanda-damaged plants sooner than expected.

The company’s geothermal facilities in Leyte sustained damage when the typhoon, internationally known as Haiyan, battered the region in November 2013. Those plants include the 112.5-MW Tongonan plant and the Unified Leyte geothermal power complex, which consists of 125-MW Upper Mahiao plant, 232.5-MW Malitbog plant, 180-MW Mahanagdong plant, and 51-MW Leyte optimization plants.

“Moving forward, we will progressively implement engineering solutions to typhoon-proof the cooling tower assets of our geothermal power plants to prevent similar damage in the future,” Mr. Tantoco said in the statement.

EDC is the country’s largest producer of geothermal energy. It operates 12 power facilities in five geothermal service contract areas in the country. -- Claire-Ann Marie C. Feliciano