According to Erwin O. Avante, vice president for corporate finance of EDC, the company expects a decline in sales from ancillary services, while the planned two-month shutdown of the Palinpinon geothermal facilities due to rehabilitation will have an impact on its bottom line.
Electricity production at the 305 MWe Palinpinon-Tongonan power plants will be reduced once the two units undergo rehabilitation for 66 days. Avante estimated foregone revenue to be equivalent to around P900 million.
What will help prop up sales is the start of commercial operations of the 55 MWe Bacon-Manito I geothermal plant in July this year. The plant will contribute P160 million in revenue a month, the company said.
The earnings performance resulted from an increase in the revenue contribution of Green Core Geothermal Inc. (GCGI), which had offset the drop in First Gen Hydro Power Corp.’s revenue contribution.
Also, Tantoco said the company is currently ramping up its exploration activities here and abroad as the Lopez affiliate targets to add up to 1,200 MWe to its existing portfolio within the next decade.
Half of this projected capacity is expected to come from domestic expansion while the rest will come from its overseas ventures, particularly in Chile, Peru, Indonesia, and possibly Kenya, Tantoco added.
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