First Gen recurring profit soars 65% to $221M
Lopez-led First Gen Corp. saw its 2018 net income jump by more than two-thirds to $243 million (roughly P12.8 billion), driven by higher contributions from its natural gas business.
Consolidated revenues from the sale of electricity went up 16 percent $2 billion (Php103.8 billion). The natural gas portfolio accounted for P65.1 billion, or 63 percent of the consolidated revenues.
FGen said the 420 megawatt San Gabriel flex plant, its newest natural gas-fired facility benefited from significantly higher dispatch and revenues as it sold power at attractive prices in the spot market in the first half and sold its full production to Meralco under its power supply agreement.
The strong profit was also attributed to lower interest expenses and higher interest income as a result of the group’s deleveraging and refinancing initiatives.
Savings in interest expense and the receipt of insurance proceeds likewise offset unrealized foreign exchange losses and higher deferred taxes.
Revenues from subsidiary Energy Development Corp.’s geothermal, wind and solar revenues accounted for P34.2 billion or 33% of the total revenues. The amount is nine percent higher than the P30 billion recorded the previous year.
EDC’s renewable energy portfolio generated higher revenues, primarily driven by the full recovery of the Unified Leyte plants (after the impact of Typhoon Urduja) that resulted in higher sales volume.
FG Hydro, owner of the 132 MW Pantabangan-Masiway hydroelectric plants, grew its revenues to P1.9 billion.
Fgen president and COO Francis Giles B. Puno said the groupo’s geothermal platform likewise made a remarkable recovery in the second half with the faster-than-expected recovery of its Unified Leyte plants from the outage caused by natural calamities in 2017, coupled with higher sales volume and more attractive selling prices.
“We expect EDC to continue to outperform this year,” Puno said.
First Gen is a leading independent power producer in the Philippines that primarily utilizes clean and indigenous fuels such as natural gas, geothermal energy from steam, hydro-electric, wind, and solar power.