EDC Drops on Speculation Earnings ‘Sharply’ Lower: Manila Mover
Energy Development Corp. (EDC) sank the most in three months on speculation the largest Philippine geothermal company will report “sharply lower” second-quarter earnings today, according to Macquarie Group Ltd.
Energy Development declined 3. percent to 5.71 pesos at 11:33 a.m. in Manila, heading for the sharpest loss since May 16. It’s the biggest loser on the benchmark Philippine Stock Exchange Index, which fell 0.2 percent.
“The market is anticipating Energy Development will report earnings sharply lower than first quarter,” Alex Pomento, a strategist at Macquarie’s Manila unit, said by phone today. “Anticipation that earnings will be weak is dragging down the stock.”
Profit may have slumped as Energy Development was forced to supply power bought on the spot market at a loss to meet contractual obligations after its Bacon-Manito geothermal complex was closed for repair, Pomento said. First-quarter net income was 2.7 billion pesos ($64.4 million).
The company said Aug. 10 that repairs on the plant may take 60 days longer than initially estimated. President Richard Tantoco said on May 9 that the facility would resume operations by September.
Tantoco couldn’t be reached for comment at his office, while investor relations manager Erudito Recio couldn’t be contacted on his mobile phone.
To contact the reporter on this story: Ian Sayson in Manila at firstname.lastname@example.org
To contact the editor responsible for this story: Darren Boey at email@example.com