First Gen income jumps 38%
First Gen Corp. saw its net income jump 38-percent year-on-year in the first nine months of 2018 to $215 million, thanks to its newest gas-fired power plant and debt management efforts.
First Gen said in a statement it also saw improved recurring net income attributable to equity holders of the parent at $180 million, a 45-percent rise from $124 million.
Further, the company’s attributable net income in the first three quarters was 50 percent higher at $151 million.
In particular, First Gen’s natural gas-based business put in recurring earnings of $140 million, 61 percent better than the previous $87 million.
The 420-megawatt San Gabriel power plant alone, First Gen’s newest and most modern generator asset, was boosted by markedly higher dispatch and revenues.
First Gen also benefited from lower interest expenses and higher interest income, which resulted from its deleveraging initiatives.
According to First Gen, savings in interest expense likewise offset unrealized foreign exchange losses and higher deferred taxes.
“We are pleased to report that First Gen’s sizable investment in new capacity with the modern San Gabriel plant started serving the power needs of Meralco’s customers in the third quarter of 2018,” First Gen president and chief operating officer Francis Giles B. Puno said.
“We are happy to report that San Gabriel delivers a low-cost source of electricity to Filipino consumers,” Puno said. “Contrary to perception, First Gen is clearly proving the price competitiveness of clean low-carbon natural gas-fired power versus more polluting coal-fired power even at full baseload dispatch.”
In the renewable energy segment, subsidiary Energy Development Corp.’s (EDC) geothermal, wind and solar revenues rang in at $476 million, 9-percent better year-on-year.
Such performance was primarily driven by the full recovery of the Unified Leyte plants after the impact of Typhoon “Urduja,” which resulted in higher sales volume.
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