First Gen recurring income rises 35% to $115 million

Buoyed primarily by the gas segment of its power generation business, the recurring earnings of First Gen Corporation had risen 35-percent to US$115 million (P5.9 billion equivalent) in this year’s first semester.

By far, the company logged an income increase of US$30 million from last year’s US$85 million (14.3 billion) for the same period.

The Lopez firm indicated that its gas platform’s profitability had been significantly higher in January to June this year, delivering recurring earnings of US$88 million (P4.5 billion) from the prior year’s US$51 million (P2.5 billion).

On attributable net income for the first half, First Gen posted 46-percent expansion to US$85 million versus last year’s US$58 million.

“The natural gas platform’s performance offset the soft performance of the other platforms,” the firm stressed, adding that its strong numbers have been boosted by lower interest expenses being part of the company’s “deleveraging initiatives.”

The company said its 97megawatt Avion plant as well as the 420MW San Gabriel flex gas plant have “solid showing”; and they also yielded savings in interest expense that somehow “offset unrealized foreign exchange losses and the renewable energy businesses’ lower earnings in first half 2018.”

According to First Gen President and Chief Operating Officer Francis Giles B. Puno, “the gas portfolio thrived during this period, especially the San Gabriel and Avion that have been able to achieve remarkable turnarounds this year as they delivered much needed power to the grid.”