First Gen Corp., a member of the Lopez Group, 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.
First Gen said in a disclosure to the Philippine Stock Exchange Tuesday 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.
First Gen said 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.
First Gen’s 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 the 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.
“San Gabriel shifts to being a contracted provider of electricity to Meralco (Manila Electric Co.) allowing it to achieve stable earnings. This contract proves the price competitiveness of natural gas-fired power versus coal-fired power even at busload and more so at mid-merit levels of dispatch,” Puno said.
Energy Development Corp.’s geothermal, wind and solar revenues accounted for $291 million (P15 billion), or 31 percent of total consolidated revenues.
EDC’s revenues, however, declined 8 percent in the first half from $318 million due to the damage sustained by Unified Leyte and Tongonan power plants from a typhoon in December 2017.
Recurring attributable earnings from EDC (excluding FG Hydro) was lower at $34 million (P1.8 billion) from $54 million $54 million (P2.7 billion) mainly because of the typhoon.