First Gen profit surged 52% in Q1

MANILA  -The Lopezes’ energy firm First Gen Corp. saw a 52-percent increase in earnings in the first quarter of the year on the back of higher income from its power generation businesses.

In a stock exchange disclosure on Tuesday, First Gen, a subsidiary of conglomerate First Philippine Holdings Corp., said its recurring net income soared to $89 million in January to March, up from $59 million in the same period last year.

“The company’s natural gas subsidiaries and EDC (Energy Development Corp.) delivered higher earnings as a result of better operating income though partially offset by higher interest expenses,” First Gen said.

Recurring earnings from its natural gas platform rose by 17 percent to $45 million from $38 million, as all four of its plants experienced high dispatch due to lack of power supply in the national grid.

Full availability of the 420-megawatt (MW) San Gabriel and the 97-MW Avion power plants contributed to robust growth in earnings.

To recall, San Gabriel last year had to operate on a de-rated capacity, or a decrease in available supply, due to gas restrictions. Avion, on the other hand, suffered “equipment issues” in 2022.

EDC’s geothermal power plants also enjoyed better sales and operating income due to an increase in spot market sales and higher electricity prices from new contracts.

EDC, First Gen’s 100-percent renewable energy arm, likewise recorded a 126-percent growth in recurring and attributable earnings at $38 million in the first quarter.

At the same time, First Gen’s revenues increased by 14 percent to $652 million due to high fuel and spot market prices.

First Gen’s natural gas portfolio accounted for 61 percent of first quarter revenues, while EDC’s geothermal, wind and solar plants contributed 35 percent. The remaining 4 percent came from First Gen’s hydro plants.

Net income contribution from First Gen’s hydro business, however, declined by 28 percent to $7 million on the back of lower revenues from the Pantabangan-Masiway power plants.

The 132-MW facilities saw a reduced volume of sold electricity due to the transfer of power supply contract to EDC in August 2022. INQ