Geothermal power producer Energy Development Corporation (EDC) reported a 47.4 percent drop in net income for the first nine months of the year to P1.39 billion from P2.65 billion in the same period in 2008.

Based on data submitted by the firm to the Securities and Exchange Commission (SEC), the decline is due to EDC’s writing off of some P2.96 billion of net deferred tax assets in this year in view of the reduced corporate income tax rate.

However, EDC posted total revenues of P15.99 billion, up six percent from the P15.09 billion revenues generated in the previous year. Total operating expense was up 43 percent at P9.43 billion from P6.6 billion.

EDC posted net foreign exchange gains of P197.1 million for the period compared to a P5.53 billion forex loss in the previous year. Interest expense was also higher at P2.06 billion compared to P1.64 billion.

EDC recently assumed full operations for the 112.5-megawatt (MW) Tongonan and 192.5 MW Palinpinon geothermal power plants.

The company won the bidding for the privatized geothermal plants and paid the Power Sector Assets and Liabilities Management Corporation (PSALM) P3.9 billion for 40 percent of the purchase price.

EDC has also paid another $7 million for incidentals of the sale which includes "purchase orders, rental, option price, performance security deposit on land lease, industrial all-risks insurance policy and comprehensive general liability."