February 20, 2014

58% of EDC's ULGPP capacity restored

In a disclosure to the Exchange, Energy Development Corp said it has completed the rehabilitation of the Tongonan Power Plant. The re-energization of the remaining unit of the Malitbog Power Plant and another unit of Mahanagdong Power Plant are also ongoing and subject to close monitoring and additional tests. In total, 377 MW of the Unified Leyte Geothermal Power Plant (ULGPP) are back online.

Our Take: As previously guided by EDC, the ULGPP is slated to be fully restored by August this year. However, we note that 58% of the damaged plant capacity has already been restored only three months since the supertyphoon hit and damaged the facility.

The company has also announced that the first unit of the Bacon-Manito plants has been re-commissioned at its rated capacity and is now undergoing reliability tests. These news flows indicate that EDC appears to be addressing execution issues that have been hounding the company since its failed attempts to bring the BacMan plants into operations. – WealthSec