First Gen net income down by 26% or USD 43-M YoY

MANILA, Nov. 16 (PNA) – Lopez-led First Gen Corp. has posted a lower net income attributable to equity holders of the parent at USD 120 million for the past nine months this year — from USD 163 million last year for the same period.

The generation firm noted the 26-percent fall was brought by lower revenues from its geothermal and hydro power plants, but was partially offset by higher revenues from its natural gas plants.

It added the recurring net income attributable to the parent for the same period was lower by 4 percent at USD 129 million — from USD 135 million last year.

First Gen also bared the company’s consolidated revenues from electricity sales was “relatively flat at USD 1.4 billion for the first nine months.”

The company cited the Santa Rita and San Lorenzo gas fired power plants brought revenues of USD 834 million, Energy Development Corp. (EDC) had sales amounting to USD 524 million and First Gen Hydro Power Corp gained USD 35 million.

For its total consolidated revenues, the two gas-fired power plants contributed 60 percent, EDC had a 37-percent share and First Gen Hydro Power Corp. had a 2-percent stake.

First Gen stressed its gas plant’s revenues was lower by 8 percent from last year’s USD 904 million due to dropping fuel prices.

The gas plant’s earnings contribution, on the other hand, was higher by USD 2 million at USD 92 million ending September 2015.

Its subsidiary — Energy Development Corp. (EDC) — also performed better with USD 524 million from USD 482 million last year.

The higher revenues were brought by the 154.16-megawatt (MW) Burgos wind project, the 49.4-MW Nasulo geothermal plant and the 140-MW Bacon-Manito geothermal plant.

However, other factors partially offset the higher revenues, such as the outage of the Tongonan Plant in Leyte early this year, unrealized foreign exchange losses, higher operating expenses and the absence of a one-time reversal impairment provision.

EDC’s contribution to First Gen also dropped to USD 60 million from USD 109 million.

First Gen Hydro Power Corp., on the other hand, had a lower earnings contribution of USD 9 million for the past nine months due to the expiration of its income tax holiday last April 2014.

Meanwhile, First Gen sees weaker contributions from its geothermal operations by year-end.

But, the power firm said it will likely be offset by the higher capacity dispatch from the Burgos Wind Project.

For its other natural-gas projects, the company said the 97-MW Avion peaking plant will likely be commissioned by year-end and the 414-MW San Gabriel mid-merit plant by the second quarter of 2016.

However, First Gen president Giles Puno said the company expects better financial performance next year with its renewable energy power plants. (PNA)