First Gen Corporation, announced growth in revenue during the first quarter of 2023, reaching Php 36.0 billion amid an increase in volume of electricity sales.
This represents a 14% increase of Php 6.9 billion compared to the same period in the previous year when it recorded Php 29.1 billion.
First Gen obtained its income from three sources: higher fuel prices, more electricity sales, and Wholesale Electricity Spot Market (WESM) prices. 61% of the company’s total income came from its natural gas portfolio, and 35% came from the geothermal, wind, and solar facilities owned by the Energy Development Corporation (EDC). Its hydroelectric units supplied the remaining 4%.
Due to improved operational income, the company’s natural gas, affiliates, and EDC contributed to growing profits. Higher interest costs did, however, partially offset it.
The natural gas platform’s recurring earnings saw a 17% growth for the first three months of the year, From Php 2.0 billion in 2022 to Php 2.5 billion this year. Four gas power plants achieved higher operating revenue and increased dispatch as a result of the grid’s lack of electricity supply. Additionally, due to the San Gabriel Power Plant’s 420 MW capacity and the Aviom Power Plant’s 97 MW capacity being fully operational, recurring earnings improved during the first quarter at both facilities.
Due to higher electricity rates from their new contracts and an increase in WESM sales, the geothermal power plants operated by EDC saw an increase in sales and operating profits. A better wind system was also advantageous for the 150 MW Burgos Wind Project. When compared to its Php 0.9 billion income in 2022, EDC’s constant earnings for the first quarter of 2023, which came to Php 2.1 billion, increased by 126%.
The hydro platform contributed Php 381.8 million to the earnings, a decrease of 28%, or Php 489.0 million, from its 2022 revenues. Due to lower sales volume brought on by the transfer of their power supply contract to EDC in August, the Pantabangan-Masiway power plants with a 132 MW capacity saw lower revenue generation.
“2023 is off to a promising start for First Gen as the portfolio benefits from the strong performance of almost all of its platforms,” First Gen President and Chief Operations Officer Francis Giles B. Puno said.
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