First Gen 2014 profit hit $193M

MANILA, Philippines—Lopez-led First Gen Corp. posted a better profit in 2014 over the previous year on higher earnings from its natural gas and geothermal plant operations.

In a disclosure, the company reported a 64-percent increase in net income attributable to the parent from $118.1 million in 2013 to $193.2 million in 2014.

The improved financial performance was driven by higher earnings contributions from the Santa Rita and San Lorenzo natural gas power plants and Energy Development Corp.’s (EDC) geothermal plants.

This was partially offset by lower earnings contribution from First Gen Hydro Power Corp. (FG Hydro) due to lower water levels.

Consolidated electricity revenue dropped slightly by $2.3 million, or by 0.1 percent, to $1.902 billion in 2014 from $1.904 billion in 2013.

The First Gen gas plants accounted for $1.21 billion, or 63.3 percent of total consolidated revenues. EDC’s revenues accounted for $651.7 million, or 34.3 percent, of the total. FG Hydro contributed $36.6 million of revenues, or 1.9 percent.

The First Gen gas plants’ slightly lower revenues were due to Santa Rita’s 250-MW Unit 40 main transformer suffering damage in February 2014 though recommissioned in July 2014 after the installation of a new transformer.

This was offset by San Lorenzo’s upgraded capacity, receipt of insurance claims and the full-year contribution of Unit 60’s operations.

As a result, the First Gen gas plants contributed $121.5 million to the company’s attributable net income for 2014, higher than the previous year’s $81.9 million.

EDC’s consolidated revenues grew by $81.3 million mainly due to electricity generated by the BacMan and Nasulo power plants.