EDC sets lower capital spending for 2018

Lopez-led Energy Development Corp. (EDC) has set a lower capital spending this year as it completed major rehabilitation projects and focused on improving the reliability of its geothermal power plants.

EDC has allotted P4.29billion for capital expenditure this year, down from P7 billion last year.

Out of the total, P4.16 billion was allotted for power plant and steamfield reliability improvement of its geothermal power units.

These geothermal power units include Leyte Geothermal Business Unit, Negros Island Geothermal Business Unit, Bacon- Manito Geothermal Business Unit, and Mt. Apo Geothermal Business Unit.

EDC said the budget would be used to support the operations and maintenance requirements of these units.

The Lopez-led firm operates four geothermal contract areas in Tongonan, Kananga, Leyte; Southern Negros, Valencia, Negros Oriental; Bacon-Manito, Albay and Sorsogon; and Mt. Apo, Kidapawan, Cotabato.

It has five geothermal plants in Leyte, namely 112.5-megawatt (MW) Tongonan, 125-MW Upper Mahiao, 232.5-MW Malitbog, and 180-MW Mahanagdong power plants, and the 51-MW optimization plants.

In Negros Island, it has two geothermal steamfield projects and two geothermal plants under Bac-Man Geothermal Inc. These are the two units of Panlipinon geothermal facility (112.5 MW and 60 MW) and the 49.4-MW Nasulo geothermal plant.

In Mindanao, EDC operates one geothermal steamfield project, which delivers steam to two EDC-owned geothermal power plants on Mt. Apo which have capacities of 52 MW and 54 MW.

Meanwhile, EDC has allotted the remaining balance of capex amounting to P130 million for investments in First Gen Hydro, Wind Ilocos Norte Business Unit, Latin America, geothermal, wind and solar expansions, and head office.

The company, through subsidiary EDC Burgos Wind Power Corp., owns the 150MW Burgos Wind Energy Project located in Ilocos Norte, which is currently the largest wind farm in the country.

FG Hydro Power Corp., which is 60 percent owned by EDC, owns and operates the 132-MW PantabanganMasiway hydroelectric plants located in Nueva Ecija.

Last year, EDC registered lower earnings due to negative impact of natural calamities that hit its Leyte geothermal facility in the middle and towards the end of the year.

It posted recurring net income attributable to equity holders of the parent of P8.8 billion, four percent lower from the previous year’s P9.2 billion.