Lopez-owned First Gen Corp. has reported a 37.7 percent jump in net income from January to September on the back of higher earnings from natural gas and geothermal power plants.
Net income for the nine-month period rose to $162.8 million from the year-earlier level of $118.2 million, the company said.
The improved financial performance was driven by higher earnings contributions from First Gas Plants such as the Santa Rita and San Lorenzo natural gas power plants and Energy Development Corp.’s (EDC) geothermal plants.
The First Gas Plants accounted for $904.5 million, or 63.4 percent of the total consolidated revenues, while EDC’s geothermal revenues accounted for $481.9 million or 33.8 percent.
First Gen’s consolidated revenues from the sale of electricity rose by $7 million, or 0.5 percent, to $1.426 billion for the nine-month period from $1.419 billion a year ago.
This was partially offset by lower earnings from First Gen Hydro Power Corp. (FG Hydro) due to low water levels. FG Hydro contributed $33.1 million or 2.3 percent of revenues.
The First Gas Plants’ revenues, however, were 4.1 percent lower than the previous year’s $943 million due to lower average gas prices and a reduction in power generation.
The lower electricity generated was due to a shutdown at Santa Rita’s 250-megawatt unit in February 2014. The plant was re-commissioned in July after the installation of a new transformer.
Despite this, the incremental effect of San Lorenzo’s upgraded capacity and higher availability was able to partially offset the drop in revenues.
As a result, the First Gas Plants contributed $88.6 million to the company’s net income for the first three quarters, higher than last year’s $66.1 million.
EDC’s January to September geothermal revenues were 12.2 percent higher than last year’s $429.4 million.
Revenues grew by $52.5 million mainly due to the electricity sales generated by the BacMan and Nasulo power plants.
The reversal of impairment resulting from Nasulo’s commercial operation and receipt of insurance claims further boosted the net income for the nine-month period.
EDC contributed $112.4 million in earnings for the period from $57 million in 2013.
First Gen’s earnings were, however, partially reduced by higher administrative expenses due to payments of taxes, expenses related to project development, and interest expense at both the parent and EDC due to fresh borrowings.
“Despite setbacks like Typhoon Glenda, there were significant positive developments this year,” First Gen President Francis Giles Puno said. RITCHIE A. HORARIO