First Gen sees $200 M recurring earnings this year

First Gen Corp. expects its recurring net income to reach nearly $200 million this year on improved contributions from its new gas-fired power plants.

In a briefing yesterday, First Gen president and chief operating officer Francis Giles Puno said first quarter numbers improved from last year brought about by energy sold from the San Gabriel and Avion gas plants.

The company reported a net income of $40 million, down four percent year-on-year. Recurring net income, on the other hand, grew 34 percent to $60 million due to the strong showing of the 97-megawatt (MW) Avion peaking plant (Avion) and the 420-MW San Gabriel flex plant (San Gabriel), as well as savings in interest expense.

Things are also looking up since San Gabriel’s output is contracted with Manila Electric Co. (Meralco) for six years, which is pending for approval before the Energy Regulatory Commission (ERC).

Once approved, the revenue and income contribution of San Gabriel would be predictable in the next five years, Puno said.

First Gen expects to sustain its growth momentum throughout the year as EDC works on increasing its output from the current 512 MW capacity.

“We expect the geothermal and hydro platforms to catch up in the coming quarters. EDC’s Leyte site is back to pre-earthquake and typhoon levels while FG Hydro has resumed selling ancillary services since end-March of this year,” Puno said.

For this year, First Gen allotted a budget of $35 million, of which $20 million will go to its planned liquefied natural gas (LNG) terminal and $15 million for the San Gabriel plant, which includes a warehouse storage that was postponed last year.