First Gen LogoFirst Gen Corporation reported recurring net income attributable to equity holders of the parent of $45 million for the first three months of 2017. This was an 11% decrease from the $51 million it made in the same period last year.
The company’s merchant power plants suffered from lower revenues due to seasonally soft Wholesale Electricity Spot Market prices. The company’s attributable net income for the first quarter-ended 2017 was $41 million, $17 million lower in comparison to the same period last year.
Consolidated revenues from the sale of electricity increased to $428 million for the first quarter of 2017 compared to $420 million for the first quarter-ended last year.
The natural gas portfolio accounted for $233 million, or 54% of First Gen’s total consolidated revenues. Their revenues were 2% higher for the first quarter of 2017 mainly due to the fresh contributions of the 97megawatt (MW) Avion Peaking Power Plant and the 420MW San Gabriel Flex Plant, though partially offset by the lower combined dispatch of the 1,000-MW Santa Rita and the 500-MW San Lorenzo power plants at 67% in 2017 versus 84% in 2016. As cool weather affected spot market prices, the earnings contribution from the natural gas portfolio decreased by $15 million to $19 million in the first quarter of this year.
Energy Development Corporation’s (EDC) geothermal, wind and solar revenues accounted for $177 million, or 41% of total consolidated revenues.
Attributable earnings from EDC (excluding FG Hydro) were flat at $30 million in the first quarter of this year (see related story on this page).
The 132-MW PantabanganMasiway hydroelectric plants’ revenues decreased by 24% to $16 million, or 4% of total consolidated revenues.
FG Hydro registered a decline in revenues of $5 million for the first three months of 2017 upon the expiry of its Ancillary Service contract in February 2017. Consequently, the attributable earnings contribution of FG Hydro was lower by $3 million at $6 million in the first three months of 2017.
“We intend to continue the positive changes we have made throughout First Gen for the rest of the year. Though the recent earthquake that damaged the San Lorenzo switchyard happened in April, the team in First Gen responded swiftly in order to get the switchyard back into operations only a week after the earthquake to ensure that the power plants produce power and generate revenues during these summer months,” First Gen president and COO Francis Giles Puno said.