First Gen Corp. said Monday net income attributed to equity holders of the parent increased 21 percent in the first quarter to $61 million from $50 million in the same period last year.
First Gen said in a disclosure to the stock exchange the 1,500-megawatt Santa Rita and San Lorenzo natural gas-fired plants in Batangas and affiliate Energy Development Corp. contributed to the higher earnings.
“The delivery of the 97-MW Avion and the 414-MW San Gabriel power plants are imminent. They have been commissioning since the early part of 2016 and have been able to serve the tightness in the market, especially during mid-merit to peaking hours,” First Gen president and chief operating officer Francis Giles Puno said.
“We remain committed to provide clean, affordably-priced and lower carbon-sourced energy to the growing needs of the Filipino consumer,” Puno said.
First Gen said on a recurring basis, attributable net income in the first quarter improved to $51 million from $49 million a year ago, supported by the higher dispatch of natural gas plants and EDC’s lower costs.
“This was partially offset by the parent company’s higher interest expense as a result of the $200-million term loan it obtained in 2015 to fund the company’s growth projects, as well as First Gen Hydro Power Corp.’s lower earnings contribution due to lower average spot market prices,” it said.
First Gen’s consolidated revenues from the sale of electricity decreased to $420 million in the first quarter from $500 million last year.
First Gas plants accounted for $229 million, or 54 percent of First Gen’s total consolidated revenues, or 26 percent lower than $308 million in the first quarter of 2015, as a result of lower fuel prices. This was partially offset by the higher combined dispatch of the gas plants at 84 percent versus 78 percent.
The earnings contribution of the natural gas-fired plants increased $4 million to $34 million in the first three months.
First Gen said aside from higher dispatch, lower operating, interest and tax expenses led to the higher income.
EDC’s geothermal, wind and solar revenues accounted for $168 million or 40 percent, while FG Hydro’s revenues reached $21 million or 5 percent of total consolidated revenues from sale of electricity.
EDC’s revenues rose $2 million to $168 million from $166 million in 2015.
“The growth was mainly due to higher contributions from the 156-megawatt Burgos wind and solar project as it fully addressed transmission constraints, as well as higher contributions from the 172.5-MW Palinpinon geothermal plant due to higher volume sales and an increase in selling prices for the period,” it said.
EDC’s operations enjoyed higher attributable earnings of $30 million, compared to $23 million a year ago, as revenue growth was supplemented by savings in operating expenses and unrealized foreign exchange gains.
FG Hydro’s revenues went down by $2 million in the first quarter to $21 million as a result of lower average spot market prices. The earnings contribution of FG Hydro was flat at $9 million.