First Gen Corp.’s net profits went up 19 percent to $113 million in the first half of 2016, from $95 million during the same period last year on the back of higher earnings contributions of its natural gas and hydro projects.
The First Gas plants, Santa Rita and the San Lorenzo natural-gas fired plants accounted for 55 percent of the company’s total consolidated revenues, 25 percent lower from the same period last year due to lower fuel prices.
The 414-megawatt (MW) San Gabriel and 97-MW Avion plants supplemented First Gas plants’ earnings as well. The company received liquidated damages following construction delays at the San Gabriel plant. This drove natural-gas fired plants earning to $82 million.
On the other hand, its subsidiary Energy Development Corp. (EDC) contributed flat earnings at $46 million while FG Hydro upped its earnings at $11 million.
First Gen also incurred higher interest expenses due to the $200 million term loan in 2015. Consolidated revenues dropped 16 percent from $965 million to $804 million.
The company’s core net income was at $88 million due to the higher dispatch of its gas and hydropower projects, offset by lower contributions from the EDC because of lower spot market prices.
“Given the current tightness in supply as evidenced by the alerts triggered in recent weeks, the timing of the 97-MW Avion and the 414-MW San Gabriel power plants’ commissioning is a positive development. Both plants have already demonstrated the ability to operate and produce power at full (or even above full) capacity, which has benefited consumers as they ease the current supply tightness,” First Gen president and COO Francis Giles Puno said.
