First Gen CorporationFirst Gen Corporation is gearing up its core business to strengthen its lead position in developing the country’s lowcarbon energy future.
The company reported recurring net income attributable to equity holders of the parent of $163 million for 2017, which is unchanged from the previous year. The natural gas platform delivered recurring earnings of $120 million versus $112 million previously. The geothermal and hydroelectric platforms both suffered from lower recurring earnings due to the natural calamities that struck Leyte in 2017 and weak spot market prices. These were offset by lower expenses at the parent company as $309 million of debt was prepaid in 2017.
“The flat earnings growth does not reflect the many noteworthy achievements of 2017 that strongly positions the company to develop a cost-competitive and flexible platform. This platform is best prepared to both enable and address a low carbon energy future,” said First Gen president and COO Giles Puno.
He added: “On our clean low-carbon gas platform, we closed out the residual technical issues in operating the 420MW San Gabriel flex plant and the 97-MW Avion peaking plant in the first half of 2017. First Gen is also progressing with the site preparation of its LNG [liquefied natural gas] regasification terminal to be located in its First Gen Clean Energy Complex in Batangas. The LNG facility will ensure the continued supply of natural gas for all of its gas-fired power plants.”
The company’s attributable net income for 2017 of $134 million was $29 million lower due to the one-time effect of break funding costs incurred as a result of a $500-million refinancing of the 1,000-MW Santa Rita power plant’s longterm debt last May 2017 as well as premiums paid for First Gen’s and EDC’s partial buyback of their respective US dollar-denominated bonds. These were in addition to EDC’s earthquake- and typhoon-related expenditures, among others.
First Gen’s consolidated revenues from the sale of electricity increased by $147 million or 9% to $1,708 million, compared to $1,561 million in 2016. The natural gas portfolio accounted for $1,036 million, or 61% of First Gen’s total consolidated revenues. Their revenues were 24% higher in 2017 mainly due to the full-year contributions of the Avion and San Gabriel plants and higher fuel revenues of the Santa Rita and the 500-MW San Lorenzo power plants. The total recurring earnings contribution from First Gen’s natural gas portfolio increased by $8 million to $120 million in 2017.
EDC’s geothermal, wind and solar revenues accounted for $628 million, or 37% of total consolidated revenues (see story in March 2018 issue).
FG Hydro, owner of the 132MW Pantabangan-Masiway hydroelectric plants, reported decreased revenues by $16 million or 32% to $33 million as its ancillary service contract expired last February 2017. The hydro plants account for only 2% of First Gen’s total consolidated revenues. Consequently, the recurring attributable earnings contribution of FG Hydro was lower by $6 million at $8 million in 2017.