By Alena Mae S. Flores – September 07, 2018 at 08:15 pm
from manilastandard.net
First Gen Corp. on Friday offered to redeem by October all its outstanding $300-million, 6.5 percent fixed rates notes listed at the Singapore Exchange Securities Trading due in 2023.
First Gen disclosed to the Philippine Stock Exchange the company would redeem the balance of $91.69 million “at a redemption price of 103.25 percent, as set in the relevant provisions of the contract.
”First Gen already bought back some of the notes from the market as early as October last year to trim its debts.
First Gen raised $300 million through a 10-year, non-call senior unsecured bond in October 2013, a move that reflected investor confidence in the company.
The company has been embarking on initiatives to deleverage and reduce its foreign currency debt exposure.
First Gen and subsidiary Northern Terracota Power Corp. earlier tendered their 992 million and 982 million shares respectively in Energy Development Corp. to Philippines Renewable Energy Holdings Corp. for P7.25 per share.
First Gen earlier said it would use proceeds to pay debts and other projects.
The company posted $115 million (P5.9 billion) in recurring net income attributable to equity holders of the parent in the first six months of 2018, up 35 percent from $88 million (P4.5 billion) year-on-year.
Earnings from natural gas power plants jumped 45 percent to $488 million (P4.4 billion) from a year ago level.
“The gas portfolio thrived during this period, especially San Gabriel and Avion that have been able to achieve remarkable turnarounds this year as they delivered much-needed power to the grid,” First Gen president and chief operating officer Francis Giles Puno said earlier.
The solid showing from the 97-MW Avion peaking plant and the 420-MW San Gabriel flexible station as well as savings in the interest expenses offset unrealized foreign exchange losses and the renewable energy businesses’ lower earnings during the period.
Consolidated revenues from the sale of electricity increased $85 million or 10 percent to $939 million (P48.4 billion) from $854 million (P42.6 billion) on year.
Natural gas plants account for $599 million (P30.9 billion) or 64 percent of First Gen’s total consolidated revenues. Natural gas revenues rose 22 percent in the first half mainly due to the higher volume sales and spot market prices.
