First Gen, EDC report lower net profits

LOPEZ-LED companies First Gen Corp. and Energy Development Corp. posted decreases in their net incomes in the first quarter due largely to lower steam sales and increased costs related to the acquisition of government-owned power facilities.

In separate disclosures to the Philippine Stock Exchange, First Gen reported that its attributable net income to parent fell 55 percent to $16.1 million in the first three months. The company’s consolidated net income declined 42 percent to $29.1 million during the same period from the previous year’s $50 million.

First Gen blamed the lower contributions of its geothermal affiliate EDC and First Gen Hydro Power Corp., which owns the 132-megawatt Pantabangan-Masiway hydroelectric power plants, for the decline in its earnings during the period.

EDC, the country’s biggest producer of geothermal energy, reported that its net income fell 61.4 percent to P1.45 billion in the first quarter from P3.77 billion a year ago. From this income, EDC contributed $9.6 million in earnings to First Gen, which holds a 46-percent economic interest in the geothermal firm.

“The income result for the quarter is generally in line with our expectation for revenues to decline in the interim mainly due to forgone steam sales for our [Bacon-Manito] project following the acquisition of the power plants in September 2010 and increased costs related to acquisitions,” explained EDC president Richard B. Tantoco.