First Gen sustains LNG vow as income grows 23%

First Gen Corp. saw its first-quarter net income jump 23 percent to $118.8 million in 2021 from $96.8 million in 2020 on the back of new contracts and lower expenses.

“The year 2021 is looking to be a better year, although we recognize that the recent surge and newly imposed lockdowns have made recovery slower,” First Gen president and chief operating officer Francis Giles Puno said in a statement.

“Nonetheless, we want to move forward and work on projects that will support the economy and increase employment,” Puno said. “The construction of the country’s first liquefied natural gas (LNG) terminal is underway and, at First Gen, we are studying our roster of growth projects so that they can be ready by the time our country has recovered.”

In terms of recurring net income, the Lopez Group‘s power generation arm saw an improvement of 21 percent to $78.5 million from $65 million.

First Gen’s natural gas platform, accounting for 2,017 megawatts (MW) or about three-fifths of its 3,495-MW portfolio, contributed $52 million or four-fifths of recurring net income for the quarter. This was a 35-percent surge from $39 billion in the same period of 2020.

The company attributed the results to higher electricity sales from the 97-MW Avion plant, mainly for the supply needs of the power grid or the ancillary services provided to the National Grid Corp. of the Philippines.

CREATE Act

First Gen also said the other gas-fired plants in its fleet benefited from lower income tax rates under the Corporate Recovery and Tax Incentives for Enterprises Act.However, these positive factors were slightly offset by lower output from the 420-MW San Gabriel power plant.

The Energy Development Corp. (EDC)—whose 1,343.8-MW array of geothermal, wind and solar assets represent 38 percent of First Gen’s entire portfolio—chipped in $27 million in recurring earnings, 23 percent of the group’s total.

EDC’s contribution increased 4 percent from $26 million in the first three months of 2020, thanks to lower expenses and interest costs.

The hydropower units, consisting of the 132.8-MW Pantabangan-Masiway complex in Nueva Ecija province and a 1.6-MW mini-hydro outfit in Bukidnon province, were consistent with a $5-million share in earnings.

First Gen’s consolidated revenues from the sale of electricity was flat at $483 million, just 0.3-percent better than the previous $481 million.