Investors in RP told to put their money in EDC
12/18/2008 | 03:32 AM
MANILA, Philippines - Investors looking for a good buy should put their money in Lopez-owned geothermal giant Energy Development Corp. (EDC) since it is a good long-term investment.
"Given the demand for renewable energy, EDC has a tremendous potential for growth in the long term," UBS Securities Phils. research head Jody Santiago told a briefing early this week.
EDC now accounts for more than 60% of the country’s installed geothermal capacity of 1,905 megawatts. The company’s total production of 1,150 megawatts comes from its geothermal streamfields in Leyte, Negros Oriental,Negros Occidental, Bicol and North Cotabato.
EDC, where First Gen Corp. has a 60% stake, has also ventured into hydroelectricity production after acquiring more than half of sister firm First Gen Hydro Power Corp. for $105 million. Earlier this month, EDC obtained a P4.1-billion loan for expansion projects, as well as to refinance maturing debt. It also plans to borrow around $400 to $500 million next year for its cash buildup.
Claire S. Quiray of Accord Capital Equities Corp. said as long as demand for renewable and alternative energy sources increases, companies like EDC would remain attractive. "It is mandated by the government, so I think it will stay," she added. But investors should consider the basics, such as market sentiment and the firm’s projects. EDC shares closed 2.4% lower at P2.36 Wednesday. — Ava Kashima K. Austria, BusinessWorld
"Given the demand for renewable energy, EDC has a tremendous potential for growth in the long term," UBS Securities Phils. research head Jody Santiago told a briefing early this week.
EDC now accounts for more than 60% of the country’s installed geothermal capacity of 1,905 megawatts. The company’s total production of 1,150 megawatts comes from its geothermal streamfields in Leyte, Negros Oriental,Negros Occidental, Bicol and North Cotabato.
EDC, where First Gen Corp. has a 60% stake, has also ventured into hydroelectricity production after acquiring more than half of sister firm First Gen Hydro Power Corp. for $105 million. Earlier this month, EDC obtained a P4.1-billion loan for expansion projects, as well as to refinance maturing debt. It also plans to borrow around $400 to $500 million next year for its cash buildup.
Claire S. Quiray of Accord Capital Equities Corp. said as long as demand for renewable and alternative energy sources increases, companies like EDC would remain attractive. "It is mandated by the government, so I think it will stay," she added. But investors should consider the basics, such as market sentiment and the firm’s projects. EDC shares closed 2.4% lower at P2.36 Wednesday. — Ava Kashima K. Austria, BusinessWorld
