First Gen LogoFirst Gen Corporation reported recurring attributable net income of the parent of $77 million (P4.0 billion) in the first quarter of 2019. This was a 28% or $17 million (P1.0 billion) jump from its $60 million (P3.0 billion) in earnings from the same period in 2018.
The company’s recurring earnings from its geothermal, wind and solar platforms surged to $26 million (P1.4 billion) in the first three months of 2019 in comparison to $14 million (P0.7 billion) in 2018 as the Unified Leyte and Tongonan geothermal plants normalized their operations and delivered higher earnings.
The hydro platform likewise came in higher at $10 million (P0.5 billion) for the period as it benefited from higher sales to the wholesale electricity spot market (WESM) and ancillary services. Lower expenses at the parent further boosted the company’s strong financial results.
The natural gas platform’s recurring earnings of $45 million (P2.4 billion) remained steady versus the $46 million (P2.4 billion) generated last year.
First Gen’s net income attributable to equity holders in the first quarter was $81 million (P4.2 billion). This was 104% better than the earnings in the first quarter of 2018 of $40 million (P2.0 billion).
Consolidated revenues from the sale of electricity increased by $64 million (P4.1 billion) or 14% to $534 million (P28.0 billion) compared to $470 million (P23.9 billion) in 1Q18.
The natural gas portfolio accounted for $328 million (P17.2 billion) or 61% of First Gen’s total consolidated revenues. Revenues were 12% higher in the first three months of 2019.
Energy Development Corporation’s (EDC) geothermal, wind and solar revenues accounted for $180 million (P9.4 billion) or 34% of total consolidated revenues.
From $149 million (P7.6 billion) in the first three months of 2018, EDC’s revenues improved by $31 million (P1.9 billion) mainly due to Unified Leyte and Tongonan’s recovery after typhoon Urduja. This was supplemented by higher Bacman, Palinpinon, Nasulo and solar rooftop revenues in 1Q19.
First Gen Hydro Power Corporation delivered better revenues by $6 million (P0.3 billion), or 37% higher, to $21 million (P1.1 billion) as sales to WESM increased in terms of volume and price. The hydro plants account for 4% of First Gen’s total consolidated revenues.
“In partnership with Tokyo Gas, we are working hard to firm up our LNG [liquefied natural gas] regasification terminal investment that is intended to ensure that our country can meet its future growing energy needs utilizing clean, low-carbon natural gas,” First Gen president Giles Puno said.
“Our LNG site in Batangas is now construction-ready, and having received the notice to proceed from the Department of Energy in March 2019, we are now commencing the next stage of development work which will bring us to a final investment decision by late 2019/early 2020.”