First Gen H1 income slumps 37.6% to $101.1M

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LOPEZ-OWNED First Gen Corp. recorded a consolidated net income of $101.1 million (P5.2 billion) in the first six months of the year, down 37.6 percent from $162.14 million (P8.33 billion) in 2016.

First Gen, in a disclosure to the Philippine Stock Exchange on Tuesday, reported that net income attributable to equity holders of the parent declined 48.7 percent to $58 million (P2.98 billion) from $113.1 million (P5.81 billion) last year.

But consolidated revenues from the sale of electricity reached $850.9 million (P43.73 billion), up 5.8 percent from $804.31 million (P41.33 billion) in the previous year.

Lopez-led First Gen Corp. currently has four power plants: the 1000-megawatt Santa Rita, the 500-MW San Lorenzo, the 97-MW Avion peaking, and 414-MW San Gabriel mid-merit power plants. PHOTO BY FIRST GEN

The natural gas portfolio accounted for $490 million (P25.2 billion), or 58 percent of the total consolidated revenues. Also, Energy Development Corp.’s (EDC) geothermal, wind, and solar revenues comprised $333 million (P17.11 billion) or 39 percent of the total consolidated revenues.


Recurring net income attributable to equity holders touched $83.6 million (P4.3 billion) in the first half, down 4 percent from $87.18 million (P4.5 billion) a year ago.

Operating income fell 1.3 percent to $254.78 million (P13.1 billion) from $258.12 million (P13.3 billion) in the same period last year.

EBITDA (earnings before income, tax, depreciation, and amortization) also declined to $352.12 million (P18.09 billion) in the first half from $385.54 million (P19.81 billion) in 2016 because of the absence of non-recurring gains, including First Gas Power Corp.’s (FGPC) liquidated damages amounting to $26.6 million (P1.37 billion) and insurance claim proceeds received by EDC.

The electricity producer’s merchant power plants somewhat recuperated from the losses indicated in the first quarter with higher electricity prices at the Wholesale Electricity Spot Market (WESM) in the second quarter.

First Gen President and Chief Operating Officer Giles Puno said one-off events including the Batangas and Leyte earthquakes affected their revenues this year.

But he added their power plants have proven resilient by finding ways to provide power supply to consumers amid these events.

Puno also said they are looking forward to better financial earnings in the second half of the year as initiatives such as the “debt reduction program, the EDC tender offer of Macquarie and GIC of Singapore, and the contracting of San Gabriel’s output fall into place.”

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