First Gen income rises 36% to US$156 million in first half

Published August 15, 2019, 12:00 AM

by manilabulletin_admin

By Myrna M. Velasco

The recurring attributable income of First Gen Corporation had climbed 36 percent to US$156 million or equivalent P8.2 billion in the first half of the year versus last year’s US$115 million or P5.9 billion.

First Gen logo

On the whole, First Gen noted that its net income attributable to equity holders reached US$166 million (P8.7 billion) in this year’s first semester.

It has been specified that US$81 million (P4.3 billion) or 95% better than the earnings in the first semester “due to the higher electricity sales of its natural gas, geothermal and hydro platforms, foreign exchange gains and benefits from deferred income taxes.”

The increase in earnings within January to June this year had been US$41 million, according to the Lopez firm’s statement to the media.

Even for its subsidiary Energy Development Corporation (EDC), financial outcome had been better by US$16 million to US$49 million or P2.6 billion equivalent from the year-ago level of US$33 million or P1.7 billion.

The company said this had been mainly due to the normalized operations of the Unified Leyte and Tongonan geothermal plants; and they also delivered higher earnings after recovering from the onslaught of typhoons in 2017.

In addition, the company’s four gas plants all delivered favorably during the period – contributing US$105 million (P5.5 billion) within this year’s six-month stretch from US$88 million or P4.6 billion in the same period in 2018.

The company noted its two gas-fired plants – the 1,000-megawatt Santa Rita and 50MW San Lorenzo generating facilities, logged downtrend in operating expenses; while the 420MW San Gabriel and 97MW Avion “generated higher electricity sales.”

In terms of revenues, the company’s electricity sales had been 15 percent higher to US$1.109 billion or P58.1 billion from last year’s US$963 million or P49.6 billion.

“Their revenues were 16 percent higher in the first six months of 2019 mainly due to higher natural gas prices and the higher combined dispatch of the plants,” the company said.

For the company’s hydro plants, earnings ended US$8 million higher to US$13 million (P700 million); with it logging higher sales at the Wholesale Electricity Spot Market (WESM) and volume sales for ancillary services.