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By Euan Paulo C. Añonuevo, Reporter
ENERGY Development Corp. (EDC), a former
subsidiary of state-owned Philippine National Oil Co., plans to
raise its war chest through fresh peso borrowings within the year.
On the sidelines of the company’s
stockholders’ meeting, Paul A. Aquino, EDC president, said the
company would borrow P25 billion from the debt market for its
P40-billion capital expenditure requirements this year.
EDC is eyeing to acquire a number of state-owned
power plants up for privatization including the Tongonan, Palinpinon
and Tiwi-MakBan geothermal facilities. The company also plans to
develop 280 megawatts to 310 megawatts of additional capacity.
Aquino said the company plans to tap peso loans
for its borrowing program to take advantage of its current debt
ceiling. EDC is eyeing a 70:30 capital mix in favor of debt.
“Right now we are a very underleveraged
company. We plan to borrow more for specific projects,” Aquino
said.
Based on the company’s 2007 balance sheet, its
long-term debt stood at P20.8 billion and equity at P34.8 billion.
Its assets were worth P65.1 billion.
As of the first quarter this year, EDC’s
long-term obligations rose to P25.5 billion, the bulk of which was
pegged in Japanese yen.
Besides its planned acquisitions, EDC will spend
on improving its drilling equipment as part of its long-term plan to
compete globally.
Aquino said that EDC is eyeing three potential
projects in Indonesia, with deals up for wraps before the year ends.
“It will depend on further negotiations.
We’re looking at exploratory activities and tie ups,” he said.
EDC is the country’s largest geothermal energy
producer as well as provider of onshore drilling services. Majority
control transferred to the Lopez-led First Gen Corp.’s wholly
owned unit Red Vulcan Holdings Corp. for P58.5 billion last year
after a state auction.
EDC’s shares closed flat Tuesday at P5.4
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