First Gen earnings up 5% on higher output

Lopez-led renewable energy firm First Gen Corp. saw a 5-percent increase in earnings last year thanks to strong recovery in its geothermal and hydro facilities.

First Gen ended 2022 with a $265-million recurring net income, up from $252 million the previous year, the company said in a stock exchange disclosure on Friday.

“First Gen managed to produce better earnings for 2022 despite lower earnings in the first nine months. We saw EDC (Energy Development Corp.) make a strong recovery from better performance of its geothermal plants, while the hydro platform delivered stable income,” First Gen president and chief operating officer Francis Puno said in a statement.

Geothermal power plants under First Gen subsidiary EDC enjoyed higher sales and operating income, as the company reported an increase in spot market sales and higher electricity prices from its contracts.

EDC’s recurring and attributable earnings were at $97 million last year, 18 percent higher than the previous year’s $82 million.

Contributions from the hydro platform, meanwhile, grew by 6 percent to $4 million.

Its natural gas platform, however, suffered a 4-percent decrease in earnings at $190 million after a unit of the 97-megawatt (MW) Avion power plant in Batangas City experienced unscheduled outages due to turbine damage.

“High fuel prices negatively affected Avion’s margins for its merchant power sales. The gas platform also paid increased income taxes and increased interest expense compared to the previous year due to high interest rate environment,” First Gen said.

To recall, First Gen’s net income in the first nine months of 2022 plunged by 12.1 percent to $213.41 million on the back of lower contributions from its San Gabriel and Santa Rita power plants.

This was due to decreased supply from the Malampaya gas field.

First Gen currently has 3,501 MW of installed capacity in its portfolio, accounting for 19 percent of the country’s gross generation.

Its 1,000-MW Santa Rita and 500-MW San Lorenzo plants supply power to distributor Manila Electric Co.