Lopez-led First Gen Corp. registered a 17.4-percent decrease in its 2013 first-half profit, as it saw lower income from its subsidiaries First Gen Hydro Power Corp. (FG Hydro) and Energy Development Corp. (EDC).
In a disclosure to the Philippine Stock Exchange, First Gen reported on Monday a net income attributable to equity holders of the parent company of $77.7 million for the first semester ended June 30, 2013, which was a 17.4-percent decline from the $94 million the firm registered in the same period in 2012.
This, according to the company, was mainly due to the lower income booked by FG Hydro, which saw a reduction in sales from ancillary services, as well as EDC.
“The dip in earnings was expected given the reduced revenues from ancillary services and further delays in the rehabilitation of BacMan [Bacon-Manito geothermal plant]. The incident at San Lorenzo’s Unit 60 was unfortunate, but we have already ordered a new transformer to get the unit back in operation as soon as possible,” First Gen President Francis Giles Puno said.
EDC also had lower earnings due to foreign exchange losses.
“While EDC actually generated higher revenues and achieved savings in its operating expenses, the foreign exchange losses could not be avoided with the depreciation of the peso,” Puno said.
Moreover, First Gen’s consolidated revenues decreased by $43.6 million, or by 4.2 percent to $984.6 million for the first half of 2013 from $1 billion for the same period in 2012.
On a recurring basis, net income attributable to parent was $92 million, higher by 1.4 percent than the same period last year due to the greater recurring income contribution of EDC and the reduction of interest expense of $13.9 million that was mostly realized at the parent company.
Madelaine B. Miraflor