First Gen’s net profit reduced by ‘Yolanda’, higher costs

Lopez-led First Gen Corp. reported lower profitability in the first quarter of 2014, citing, among others, the negative impact of Typhoon Yolanda on the earnings of subsidiary Energy Development Corp. (EDC).

In a disclosure to the Philippine Stock Exchange, First Gen said its net income attributable to equity holders of the parent stood at $42.9 million for the first quarter. This was 23.2 percent lower than the $55.9 million booked in the same period in 2013 and was attributed to higher operating expenses and lower earnings booked by EDC, as well as the revenue adjustment of First Gen Hydro Power Corp. (FG Hydro), due to the adjustment of energy spot market prices for November and December 2013 billings.

On a recurring basis, First Gen said, net income attributable to the parent was $42.3 million, lower by 22.7 percent than the same period last year due to the lower recurring income contribution of EDC and higher interest expenses.

First Gen said its consolidated revenue from the sale of electricity dropped by 7.6 percent to $457 million for the first quarter of 2014 from $494.6 million for the same quarter last year. The Santa Rita and San Lorenzo natural gas-fired power plants accounted for $295.5 million or 64.7 percent of the total consolidated revenue.