First Gen nets $118.2M as of Sept., down 21%

Lopez-led First Gen Corp. posted a 21-percent decline in its net income to $118.2 million in the first nine months of the year, from $150 million a year ago.

In a disclosure to the Philippine Stock Exchange Friday, First Gen said the decline in earnings was due to the lower income booked by First Gen Hydro Power Corp. (FG Hydro) and FGP Corp. (FGP).

FG Hydro saw reduced sales from its ancillary services during the period, while FGP Corp. suffered from reduced energy sales as the fire at the main transformer of the 500-megawatt San Lorenzo natural gas facility in Batangas cut the power plant’s capacity by half.

On a recurring basis, net income attributable to parent stood at $134.5 million, lower by 4.7 percent compared to the same period last year.

First Gen’s consolidated revenues fell by 9.8 percent to $1.419 billion for the first nine months of 2013 from $1.573 billion a year ago.

The Santa Rita and San Lorenzo natural gas-fired power plants (the First Gas Plants) accounted for $943.2 million, or 66.5 percent, of the total consolidated revenues while geothermal revenues from the Energy Development Corp. accounted for $429.4 million or 30.3 percent. FG Hydro accounted for $43.7 million, or 3.1 percent.

The First Gas Plants’ revenues were 12 percent lower from the previous period’s $1.071 billion due to the lower dispatch of the gas plants and lower average gas prices. The decrease in dispatch was brought about by a scheduled major maintenance outage at the 1,000 MW Santa Rita power plant and the fire that occurred at San Lorenzo’s Unit 60 transformer last May.

This translated to lower combined earnings of the First Gas Plants. Amy R. Remo