First Gen profit up 21% in Q1

First Gen Corp. grew its net profits over a fifth in the first three months of 2016 on the back of higher earnings contribution from its gas-fired power plants and its major subsidiary.

In a disclosure to the Philippine Stock Exchange, the Lopez-owned power firm reported a net income of $61 million for the first quarter of the year, up 21 percent from the $50 million in the same period last year.

The firm attributed the growth in income to higher earnings contribution from its 1,500-megawatt (MW) Santa Rita and San Lorenzo natural gas-fired plants (First Gas Plants) and of subsidiary Energy Development Corp. (EDC).

The higher income contribution of First Gas plants was due to higher combined dispatch lower operating, interest and tax expenses.

On a recurring basis, First Gen said core net income slightly increased from $49 million to $51 million due to the First Gas plants and EDC’s higher dispatch and lower costs.

However, these were partially offset by First Gen’s higher interest expense arising from its $200-million term loan in 2015 and First Gen Hydro Power Corp.’s lower earnings contribution due to lower average spot market prices.

Meanwhile, revenues from the sale of electricity decreased from $500 million to $420 million.

The First Gas plants accounted for 54 percent of total or $229 million, EDC with 40 percent or $168 million, and FG Hydro with five percent or $21 million.

“We remain committed to provide clean, affordably-priced and lower carbon-sourced energy to the growing needs of the Filipino consumer,” First Gen president and COO Francis Giles Puno said.

Currently, the firm is completing its 97MW Avion and the 414-MW San Gabriel gas-fired power plants in Batangas.

“The delivery of the 97-MW Avion and the 414-MW San Gabriel power plants are imminent. They have been commissioning since the early part of 2016 and have been able to serve the tightness in the market, especially during mid-merit to peaking hours,” Puno said.