First Gen CorporationFirst Gen Corporation reported net income attributable to equity holders of the parent of $170M for the first nine months of 2016. This was a 42%, or a $50M increase from the $120M it made for the same period in 2015. The company’s newest natural gas-fired power plant, the San Gabriel Flex-Plant, booked income from liquidated damages caused by its construction delay while Energy Development Corporation (EDC) and First Gen Hydro Power Corporation both delivered higher earnings.
First Gen’s consolidated revenues from the sale of electricity decreased to $1.17 billion for the first three quarters of 2016 compared to $1.40B last year. The First Gas Plants accounted for $632M, or 54% of First Gen’s total consolidated revenues. To supplement Santa Rita and San Lorenzo’s earnings, San Gabriel recorded $53M in delay-liquidated damages and unrealized foreign exchange gains. The 97- MW Avion natural gas-fired power plant declared commerciality on September 26, 2016; hence, it generated both commissioning and operating income during the third quarter of 2016. The earnings contribution of the natural gas-fired plants increased by $41M to $130M in the first nine months of 2016.
EDC’s geothermal, wind and solar revenues accounted for $500M, or 42% of total consolidated revenues. The company’s attributable earnings of $67M in the first three quarters of 2016 came in higher from $60M last year as the drop in revenues was matched by declines in operating and interest expenses, supplemented by a receipt in insurance claims from its Bacman project.
The 132-MW Pantabangan- Masiway hydroelectric plants’ revenues were $41M, or 4% of total consolidated revenues. FG Hydro showed a growth in revenues of $6M for the period ended September 30, 2016 versus last year’s $35M due to higher ancillary service sales, though likewise affected by lower spot market prices. Consequently, the attributable earnings contribution of FG Hydro was higher by $4M, or 47% at $13M.
On a recurring basis, First Gen’s attributable net income for the first nine months of 2016 was flat at $128M. The parent company likewise incurred higher interest expense as a result of a new $200M term loan it obtained in September 2015.