First Gen’s income rises 4% to $277m on LNG business
By Alena Mae S. Flores – March 21, 2024, 7:55 pm
from manilastandard.net
First Gen Corp. of the Lopez Group on Thursday reported a 4-percent increase in attributable recurring net income to $277 million (P15.4 billion) in 2023 from $265 million (P14.3 billion) in 2022.
“2023 was a positive year for First Gen as EDC achieved its highest earnings to date, while FGEN LNG started to commission. The company was likewise declared the highest bidder for the 165-megawatt Casecnan hydroelectric power plant,” First Gen president and chief operating officer Francis Giles Puno said.
“This year, these developments should translate to additions to First Gen’s earnings as the LNG [liquefied natural gas] terminal reaches commercial operations and the effectivity of the terminal lease agreement with Gas Aggregator Philippines Inc. happens. Casecnan will likewise be a positive addition to the bottom line from day one of its turnover,” Puno said in a disclosure to the stock exchange.
Energy Development Corp.’s (EDC) geothermal portfolio delivered record earnings from its high operating income owing to an improvement in electricity prices.
The parent also contributed to the higher 2023 income, benefitting from higher interest income due to high yields from its internally generated cash.
First Gen’s revenues, however, declined 7 percent to $2.475 billion (P137.7 billion) in 2023 from $2.667 billion (P144.1 billion) in 2022 as revenues across all the platforms decreased.
The company attributed the decline to lower fuel revenues, which positively redounded to lower electricity prices for consumers.
Natural gas and liquid fuel prices dropped globally, accompanied by lower electricity output sold by the natural gas platform.
EDC and First Gen Hydro Power Corp. also had lower sales volumes, partly offset by higher average selling prices.
The natural gas portfolio accounted for 65 percent of First Gen’s total consolidated revenues, while 32 percent came from EDC’s geothermal, wind and solar plants.
The balance came from the company’s hydro plants and First Gen Energy Solutions, its retail electricity supplier.
The natural gas platform reported a 5-percent decrease in recurring earnings for 2023 to $184 million (P10.25 billion) from $190 million (P10.28 billion) in 2022.
The 420-MW San Gabriel power plant and the 97-MW Avion power plant, enjoyed higher recurring earnings due to the full availability of both plants coupled with lower fuel costs.
Both the 1,000 MW Santa Rita and 500 MW San Lorenzo power plants netted lower recurring earnings due to elevated interest expenses.
Meanwhile, FGEN LNG Corp., the company’s incorporated special purpose vehicle for the operations of the Interim Offshore LNG Terminal (IOT), started to generate commissioning revenues from its pre-commercial operations.
It also booked a receipt of $25 million in non–recurring other income from construction delay claims.
FGEN LNG generated revenues of $8 million and a recurring net loss of $20 million in 2023.
