First Gen Corporation reported net income attributable to equity holders of the parent of $77.7 million for the first semester ended June 30, 2013.
This was a 17.4% decrease from the $94.0M registered in the same period of 2012. This mainly resulted from the lower income booked by First Gen Hydro Power Corporation due to reduced sales from ancillary services.
On a recurring basis, net income attributable to parent was $92.0M, higher by 1.4% than the same period last year due to the greater recurring income contribution of Energy Development Corporation (EDC) and the reduction of interest expense of $13.9M that was mostly realized at the parent company.
First Gen’s consolidated revenues decreased by $43.6M, or by 4.2%, to $984.6M for the first half of 2013 from $1,028.3M for the same period in 2012. The 1,500-MW First Gas Plants accounted for $656.0M, or 66.6%, of the total consolidated revenues while EDC’s geothermal revenues (ex-FG Hydro) accounted for $290.9M, or 29.5%, and FG Hydro accounted for $37.2M, or 3.8%, of total consolidated revenues.
“The dip in earnings was expected given the reduced revenues from ancillary services and further delays in the rehabilitation of BacMan. The [fire] incident at San Lorenzo’s Unit 60 was unfortunate, but we have already ordered a new transformer to get the unit back in operation as soon as possible,” First Gen president Francis Giles Puno said.
He added: “While EDC actually generated higher revenues and achieved savings in its operating expenses, the foreign exchange losses could not be avoided with the depreciation of the peso. The company is extremely busy in executing its growth projects, including the 87-MW wind farm in Burgos, the 40-MW Negros transfer project and the 500-MW San Gabriel natural gas projects.”