The DOE on Wednesday touted 13 applications received for geothermal and hydro service contracts covering 11 out of 22 areas that the DOE made available to developers of renewable energy (RE) projects.
Included in the applications received are two geothermal projects from FGEN’s subsidiary, Energy Development Corp (EDC). Total potential capacity for these two is estimated at 44 MW. If pushed through, this will translate to an increase of 3% to EDC’s total capacity.
Note that EDC was able to produce Php 38.74 Billion in revenues last 2019. With this in mind, an additional 44MW of geothermal capacity could bring in around a billion pesos in revenues or 1% increase to FGEN’s topline. FGEN is currently trading at 7.5x P/E full-year 2022 (FY22) below its 10-year mean of 10.0x.