First Gen net income rose 34% in 2019

By Lenie Lectura -March 19, 2020
from Business Mirror

First Gen Corp. posted P15.4 billion in net income last year, up 34 percent from P11.6 billion recorded in 2018, mainly on account of higher electricity sales.

The company said on Wednesday that the P3.8-billon increase was brought about by higher electricity sales of its clean fuel platforms, foreign exchange gains, lower interest expense, and benefits from deferred income taxes.

Electricity sales revenue rose by eight percent to P111.8 billion at end-2019.

The natural gas portfolio accounted for 62 percent of First Gen’s total consolidated revenues. Geothermal, wind, and solar revenues accounted for 35 percent of First Gen’s total consolidated revenues.

First Gen’s subsidiary, Energy Development Corp., operates various geothermal, wind and solar power projects. The hydro business of First Gen, meanwhile, is under FG Hydro.

FG Hydro, owner of the 132 MW Pantabangan-Masiway hydroelectric power plants, accounted for 2 percent of First Gen’s total consolidated revenues.

Meanwhile, First Gen’s recurring net income attributable to equity holders stood at of P14.8 billion last year, up 17 percent.

“Our steady financial results for 2019 demonstrates to our shareholders that our strategy to catalyze the country’s movement towards a decarbonized future is feasible and continues to pay off,” said First Gen President and COO Francis Giles B. Puno.

“We will continue to focus on advancing decarbonization by constructing the country’s first Liquefied Natural Gas delivery terminal. This will be completed before our contract from the Malampaya natural gas field expires in 2024, and provide for the continuing reliable operations and expansion of our gas- fired power plants,” Puno added.

First Gen’s natural gas-fired power plants delivered increased recurring earnings for the year. The two newer gas plants—the 420 MW San Gabriel and 97 MW Avion—generated higher electricity sales from their respective customers.

Avion gas plant provided a larger increase in earnings as the merchant plant enjoyed higher dispatch and higher selling prices in 2019.

The two older plants—the 1,000 MW Santa Rita and 500 MW San Lorenzo—performed steadily.

First Gen has 3,492MW of installed capacity in its portfolio, which accounts for 21 percent of the country’s gross generation.