First Gen Corporation reported net income attributable to equity holders of the parent of $42.9 million for the first quarter ended March 31, 2014.
This was a 23.2%, or $13.0M, decrease from the $55.9M registered in the same period in 2013. The reduction was primarily due to the lower earnings booked by Energy Development Corporation (EDC) and the revenue adjustment of its subsidiary First Gen Hydro Power Corporation.
On a recurring basis, net income attributable to the parent was $42.3M, lower by 22.7% than the same period last year due to the lower recurring income contribution of EDC and higher interest expenses.
First Gen’s consolidated revenues from the sale of electricity decreased by $37.6M, or by 7.6%, to $457.0M for the first quarter of 2014 from $494.6M for the same quarter last year. The Santa Rita and San Lorenzo natural gas-fired power plants accounted for $295.5M, or 64.7% of the total consolidated revenues. EDC’s revenues, which include FG Hydro, accounted for $159.5M, or 34.9%.
In total, the natural gas plants contributed $27.6M to the company’s attributable net income for the first quarter of 2014, in comparison to the previous year’s $24.8M. EDC and its subsidiaries contributed $29.1M in attributable earnings for the period from $38.7M for the same period in 2013.
Earnings were further reduced by higher interest expense at both First Gen and EDC due to fresh borrowings in 2013, as well as expenses related to the development of the 414-MW San Gabriel and 100-MW Avion natural-gas fired power plants.
“Despite registering lower net income in the first quarter, we are still optimistic about the remaining part of 2014. EDC restored Unified Leyte to its pre-Yolanda levels last March, while Bacman Units 1 and 3 are currently operating. Later in the year, we expect Bacman Unit 2 to resume its operations and to have the Nasulo geothermal power plant deliver an incremental ~20 MW,” First Gen president Francis Giles Puno said.