First Gen reports lower net income

Lopez-led First Gen Corporation reported a decline in net income and revenue for the first nine months of the year, attributing the drop to lower electricity sales and reduced geothermal revenue.

In a report by the Manila Bulletin, First Gen revealed that its attributable recurring net income fell by 17 percent to P11.6 billion from P13.8 billion in the same period last year. Revenue also saw a two percent dip, reaching P104.6 billion.

The company’s geothermal arm, Energy Development Corporation (EDC), posted a revenue decrease and a rise in cash operating expenses. 

First Gen’s natural gas operations, however, recorded increased profits, and the Casecnan Hydroelectric Power Plant, which was acquired in February. 

Casecnan generated approximately P651 million in net income in its first seven months of operations, partially offsetting the lower earnings from the 132 MW Pantabangan-Masiway power plants (PMHC), whose income fell from P305 million to P161 million due to lower water levels and decreased market prices.

First Gen’s 420 MW San Gabriel Power Plant and the 1,000 MW Santa Rita Power Plant reported improved operating income, driven by savings in operating expenses and high spot market prices for San Gabriel. 

Overall, First Gen’s natural gas portfolio, including revenue from its LNG terminal’s pre-commercial operations, accounted for 65 percent of consolidated revenue, while EDC’s geothermal, wind, and solar plants contributed 33 percent, and the hydro business provided the remaining portion.

EDC’s recurring earnings dropped by 43 percent to P3.3 billion compared to P5.7 billion last year, affected by lower electricity sales, higher operating costs for steamfield maintenance, and increased interest expenses due to new debt. 

Meanwhile, the 97 MW Avion Power Plant saw a decline in net income, linked to lower kilowatt-hour sales and rising operating costs.

Hydro operations achieved recurring earnings of P800 million for the first three quarters, while the Casecnan hydro plant helped balance losses in other areas.