First Gen Corp. pulls down net income of umbrella group in 2017

First Gen Corps pulls down net income of umbrella group in 2017

The First Philippine Holdings Corp. (FPH) had a 40 percent drop in net earnings for 2017 following non-recurring losses from energy subsidiary; First Gen Corp.

The company disclosed that its net income attributable to the parent fell to P5.9 billion in 2017, versus P9.9 billion the previous year, because of its “share in one-off losses related to First Gen group’s debt prepayments.”

Sans the non-recurring items, however, the core net income went up by 15 percent from P5.9 billion to P6.8 billion.

“The growth was driven by the stronger recurring earnings from the energy, real estate, and manufacturing sectors,” FPH said.

Total revenues rose 14 percent to P104.9 billion for 2017 driven by the higher revenues from the sale of electricity amid the full year contributions of the Avion and San Gabriel gas plants.

First Gen Corp.’s revenue from electricity sales went up by nine percent – where 61 percent came from its natural gas plants: 1000 – megawatt (MW) Santa Rita, 500 – MW San Lorenzo, 97 – MW Avion peaking and the 414 – MW San Gabriel mid-merit gas plants.

Earlier this year, FPH chairman and CEO Federico Lopez said that its company will continue to build clean energy power projects that will provide more flexibility and faster capacity ramp-up to the power grid, and also to replace its coal-fired power plants.

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