Stock Market News: EDC eyeing expansion in Chile

source: http://www.energy.com.ph

EDC to expand geothermal projects overseas

07/17/2011 | 04:37 PM 

Energy Development Corp. (EDC) may soon be operating 13 concession areas in Chile as part of its overseas expansion program.

EDC president and COO Richard Tantoco said they have also “submitted bids for five other concession areas in Chile" on top of the 13 applications for concession areas there.

The company, an affiliate of the Lopez-led First Gen Corp. is looking to becoming an international geothermal company.

“In 2010, we began to plant the seeds for global expansion in countries like Chile, Kenya and Indonesia and we hope to see these initiatives bear fruit in the next few years," said EDC chairman and CEO Federico Lopez.

In March this year, EDC set up EDC Chile Limitada, a subsidiary in Chile. EDC Chile Limitada is a limited liability company incorporation in Satiago, Chile, that explores, evaluates and extracts minerals or substances to generate geothermal energy.

Tantoco added that EDC is also looking into possible geothermal project areas in Indonesia, where they are also applying for greenfield concession areas.

“In Indonesia, progress has been slower as we continue to explore areas and consider joint venture with holders of concession areas," Tantoco said.

EDC has also received join venture offers from different countries, owing to their 35 year experience in geothermal technology, said Tantoco.

“Here, we will tread carefully and prudently, and work only in jurisdictions with attractive resource and favorable investment environment," he added.

The overseas projects are expected to begin in 2015 or 2016. Tantoco did not give cost estimates of the expansion but said that a geothermal project costs around $4 million per megawatt to develop.

In May this year, EDC posted a decline in net income for the first quarter of 2011 because of lower revenues and higher acquisitions costs, slipping 61.4 percent to P3.77 billion while core net income went down 61 percent to P1.23 billion.

EDC has 1,199 megawatts (MW) of geothermal capacity and 132 MW of hydro installed capacity. The company is also working on an 86 MW wind farm in Northern Luzon. - BC/KBK, GMA News

source: http://www.gmanews.tv 

My Personal Analysis: AboitizPower Corporation(AP)

  source: http://www.aboitizpower.com

AboitizPower is mainly a hydroelectric power generating company. Its subsidiaries comprise mostly of power distributors in the Visayas and Mindanao region and  hydroelectric plants in the Northern Luzon area.

Below is AboitizPower's structure:

The Aboitiz group are the major stakeholder.

AboitizPower's price growth has been phenomenal starting at around 4 pesos in January 2009 and closing at the 30 pesos level to date.

AboitizPower has allotted around 49 billion pesos for 2011 CAPEX(Capital Expenditure) for the Subic and Davao coal fired plants. (to read more on this click here)

Fundamentally AboitizPower , just like other utility corporation,  is banking on CAPEX to be able to generate revenues thus a big portion of funding comes from borrowing. Having a Current ratio of 2.58 which is very ok but with a Debt-to-Equity ratio of around 1.33 due to massive borrowing for expansion and rehabilitation projects of which the benefit will be realize in the next 2-5 years. A notable increase of revenue from power generation was the noted in 2010 as compared to 2009(source AP FY2010 Financial and Operating Performance)

In my opinion AboitizPower(AP) is good stock and a must buy while it is at a low level. Though when one looks at the 10 yr range it seems that its growth slowed down in mid-2010 to 2011 after almost 2 years of growth.

  

On a year range Stochastic indicate a sudden rise and could possibly indicate an overbought level.  Thus a good time to buy since price might go down in the next couple of weeks.

My Personal Analysis: AboitizPower Corporation(AP)

  source: http://www.aboitizpower.com

AboitizPower is mainly a hydroelectric power generating company. Its subsidiaries comprise mostly of power distributors in the Visayas and Mindanao region and  hydroelectric plants in the Northern Luzon area.

Below is AboitizPower's structure:

The Aboitiz group are the major stakeholder.

AboitizPower's price growth has been phenomenal starting at around 4 pesos in January 2009 and closing at the 30 pesos level to date.

AboitizPower has allotted around 49 billion pesos for 2011 CAPEX(Capital Expenditure) for the Subic and Davao coal fired plants. (to read more on this click here)

Fundamentally AboitizPower , just like other utility corporation,  is banking on CAPEX to be able to generate revenues thus a big portion of funding comes from borrowing. Having a Current ratio of 2.58 which is very ok but with a Debt-to-Equity ratio of around 1.33 due to massive borrowing for expansion and rehabilitation projects of which the benefit will be realize in the next 2-5 years. A notable increase of revenue from power generation was the noted in 2010 as compared to 2009(source AP FY2010 Financial and Operating Performance)

In my opinion AboitizPower(AP) is good stock and a must buy while it is at a low level. Though when one looks at the 10 yr range it seems that its growth slowed down in mid-2010 to 2011 after almost 2 years of growth.

  

On a year range Stochastic indicate a sudden rise and could possibly indicate an overbought level.  Thus a good time to buy since price might go down in the next couple of weeks.

Listed Company Profile: Meralco

source: http://www.meralco.com.ph/

We have been waiting for this giant to rise up and be one of the leading stocks in the PSE.

About 2 months ago I was checking this stock and I knew there is something with this company. Being one of MPI's gem in their list of stocks and as well as the recent move by SMC the price of MER suddenly rose rapidly at year end it posted a 237.00 and nearly surpass its all time high of 292.00 in the first weeks of 2011 when it posted a 287.00 per share market price.

Originally a Lopez company, the entry of Manny Pangilinan's First Pacific Holdings through Metro Pacific Investments have given boost to MER's planned entry to the power generation sector a move from power retailer to power producer. And the latest is the entry of Ramon Ang of SMC .

Looking at its price it seems to hit another high after the uneasy start of 2011. 

I have seen a rise in its price back in Nov 2010 thus bought some until it went down due to year end jitters. After cost averaging till the end of 2010 I was looking at a 225 target price with a 15% gain but it went far beyond my expectation. Right now it sits at 280.00.

source: www.bloomberg.com

In fundamental aspects Meralco is in good shape having a good current ratio at 1.10 and a PE% of 35 (MRQ source www.reuters.com). Outlook on 2011 is positive and if MER's plans to get into self-generation of electricity it might have a better market price as what was seen with SCC.

Listed Company Profile: Meralco

source: http://www.meralco.com.ph/

We have been waiting for this giant to rise up and be one of the leading stocks in the PSE.

About 2 months ago I was checking this stock and I knew there is something with this company. Being one of MPI's gem in their list of stocks and as well as the recent move by SMC the price of MER suddenly rose rapidly at year end it posted a 237.00 and nearly surpass its all time high of 292.00 in the first weeks of 2011 when it posted a 287.00 per share market price.

Originally a Lopez company, the entry of Manny Pangilinan's First Pacific Holdings through Metro Pacific Investments have given boost to MER's planned entry to the power generation sector a move from power retailer to power producer. And the latest is the entry of Ramon Ang of SMC .

Looking at its price it seems to hit another high after the uneasy start of 2011. 

I have seen a rise in its price back in Nov 2010 thus bought some until it went down due to year end jitters. After cost averaging till the end of 2010 I was looking at a 225 target price with a 15% gain but it went far beyond my expectation. Right now it sits at 280.00.

source: www.bloomberg.com

In fundamental aspects Meralco is in good shape having a good current ratio at 1.10 and a PE% of 35 (MRQ source www.reuters.com). Outlook on 2011 is positive and if MER's plans to get into self-generation of electricity it might have a better market price as what was seen with SCC.