LOPEZ-LED First Gen Corp. on Wednesday reported a net income of $167.3 million attributable to the parent firm in 2015, down 13.4 percent or $25.8 million from a year earlier.
Subsidiary Energy Development Corp. (EDC) was primarily responsible for the bottom line drop, because of a certain non-recurring gain in 2014, First Gen president Giles Puno during the company’s annual stockholders meeting.
“More importantly, on a recurring basis, we performed solidly as our attributable net income increased by 6.6 percent to $163 million in 2015 from $152.9 million. The growth was driven by the higher dispatch of our natural gas-fired plants and lower business development expenses.
“EDC and First Gen Hydro Power Corporation [FG Hydro], however, delivered marginally lower recurring attributable net income,” Puno noted.
“We also recognize that our financial results were below our own expectations. We incurred delays in the construction of the 97 megawatt (MW) Avion and the 414 MW San Gabriel natural gas power plants. We also encountered operational difficulties with one of the 37.5-MW units of EDC’s 112.5-MW Tongonan geothermal plant,” he added.
First Gen’s total consolidated electricity revenue decreased to $1.84 billion from $1.90 billion, reflecting lower fuel charges consistent with the drop in global oil and gas prices.
The decline was partially offset by higher revenue contributions from EDC’s Burgos Wind and Solar Projects and the rehabilitated geothermal projects, as well as FG Hydro’s higher dispatch.
EDC’s geothermal, wind, and solar revenue accounted for 38.6 percent or $709 million of total revenue.
On a recurring basis, EDC’s attributable earnings dropped to $89.9 million from $93.3 million.
FG Hydro’s revenue contribution grew by $5.0 million to $41.6 million in 2015, which accounted for 2.3 percent of total revenue. The increase was a result of higher dispatch and the absence of a $5.6-million revenue adjustment booked in 2014 – a result of the re-computation of spot prices in the November and December 2013 billings as ordered by the Energy Regulatory Commission.
“However, attributable net income contribution was relatively flat at $8.4 million in 2015 from $8.5 million in the previous year, while recurring attributable net income decreased by $4.1 million from $12.5 million in 2014 to $8.4 million in 2015 due to the expiration of FG Hydro’s income tax holiday in April 2014,” Puno said.
“Our prevailing strategic commitment is to serve the growing needs of the Filipino consumer with clean, affordable electricity and address it by focusing our efforts to grow our clean and renewable energy portfolio and to expand our natural gas platform beyond power generation by developing a world-class liquefied natural gas regasification terminal to prepare the country for a post Malampaya domestic gas world,” he added.