First Gen’s profit rises 28% to P13.8b

By Alena Mae S. Flores – November 10, 2023, 9:30 pm
from manilastandard.net

First Gen Corp. reported on Friday a 28-percent increase in attributable recurring net income in the first nine months to $249 million (P13.8 billion) from $194 million (P10.2 billion) in the same period last year.

First Gen, the Lopez Group‘s clean and renewable energy provider, said in a disclosure to the Philippine Stock Exchange that subsidiary Energy Development Corp.’s (EDC) geothermal portfolio continued to deliver higher earnings on higher electricity prices.

First Gen’s natural gas portfolio likewise delivered a slight increase in earnings from the 420 megawatt (MW) San Gabriel and the 97MW Avion facilities due to their higher operating income for the year.

“The First Gen portfolio continues to deliver a positive performance in 2023 and there are still a few more milestones that we expect to achieve towards the end of year, including the commercial operations of our LNG terminal at the First Gen Clean Energy Complex,” First Gen president and chief operating officer Francis Giles Puno said.

“We expect the closing and turnover by PSALM of the 165 MW Casecnan hydroelectric power plant in early 2024,” Puno said.

Revenues declined 5.26 percent to $1.891 billion (P104.7 billion) from $1.996 billion (P105.2 billion) in the same period of 2022 due to lower natural gas and liquid fuel prices, lower liquid fuel usage and the 132-MW Pantabangan-Masiway facilities’ lower contracted revenues.

The natural gas portfolio accounted for 65 percent of First Gen’s total consolidated revenues.  EDC’s geothermal, wind and solar plants represented 33 percent and hydro plants, 2 percent.

The natural gas platform reported a 4-percent increase in recurring earnings in the first nine months to $147 million (P8.1 billion) from $142 million (P7.5 billion) in 2022.

First Gen said the San Gabriel and Avion power plants enjoyed better recurring earnings due to the full plant availability and lower fuel costs. The San Lorenzo power plant earned a lower net income as its interest expenses rose.

EDC’s recurring earnings reached $104 million (P5.7 billion) in the first three quarters, up 58 percent from $66 million (P3.5 billion) in 2022. Its geothermal power plants enjoyed higher sales and operating income as they benefited from higher electricity prices.

The company also had fewer purchases of replacement power due to its higher generation.

First Gen said the 150 MW Burgos wind project continued to benefit from an improved wind regime in 2023.

The hydro platform’s contribution to First Gen’s recurring earnings declined by 12 percent to $5.7 million (P316 million) from its 2022 recurring income of $6.5 million (P341 million).

The Pantabangan-Masiway power plants’ volume of electricity sold declined due to the transfer of its power supply contract to EDC last August 2022.

First Gen’s power generation portfolio utilizes clean and indigenous fuels such as natural gas, geothermal energy from steam, hydro, wind, and solar.

The company has 3,482MW of installed capacity in its portfolio, which accounts for 19 percent of the country’s gross generation.

First Gen is a subsidiary of First Philippine Holdings Corp., one of the most established conglomerates in the country.