First Gen sees 2012 net income to exceed $100M

Lopez-led First Gen Corp. expects its net income to triple this year from $35 million last year, on the back of higher revenues from affiliate Energy Development Corp. and the ancillary contracts of subsidiary First Gen Hydro Power Corp.

In a briefing following the company’s stockholders’ meeting Wednesay, First Gen president Francis Giles B. Puno said the projected increase was highly achievable as the company registered a 171-percent surge in net income attributable to equity holders of the parent in the first quarter to $52.1 million from $19.2 million a year ago.

Analysts, based on their combined reports, also estimated First Gen’s net income to hit $110 million this year, added First Gen executive vice president and director Richard B. Tantoco.

According to Puno, the sharp increase in the net income in the first three months can be partly attributed to the 84-percent hike in the earnings contribution of EDC to $23.4 million from $12.7 million a year ago.

“The power sales contracts of EDC subsidiary Green Core Geothermal Inc., owner of the Palinpinon and Tongonan plants in Leyte, which became effective in mid-2011, were the driver of the better financial results,” First Gen said in a disclosure to the Philippine Stock Exchange.

“As of March 31, 2012, First Gen’s increased economic stake in EDC at 48.8 percent is now reflected in its equitized net earnings,” it added.

FG Hydro, operator of the 132-MW Pantabangan-Masiway hydroelectric plants, had sterling results in the first quarter, contributing $17.8 million to First Gen’s bottom line, mainly through sales of electricity via ancillary services.

“We see the natural gas, hydro and geothermal portfolios delivering stronger recurring net earnings in the future. We continue to be focused on operational improvements, with particular focus on the EDC geothermal plants, especially the completion of the rehabilitation of the BacMan plants this year,” Puno said.—Amy R. Remo