First Gen Corporation reported improved recurring net income attributable to equity holders of the parent at $180 million (P9.4 billion) in the first nine months of 2018. This was a 45%, or $56 million (P3.2 billion) jump from $124 million (P6.2 billion) in 2017. The company’s natural gas platform surged and delivered recurring earnings of $140 million (P7.3 billion) versus $87 million (P4.4 billion) previously.
The company’s attributable net income in the first three quarters of 2018 of $151 million (P7.9 billion) was 50% higher from 2017. Its newest and most modern plant, the 420-megawatt (MW) San Gabriel flex plant, sold power in the spot market at attractive prices in the first half of 2018, and its full production to Meralco under its power supply agreement in the third quarter.
The company’s numbers were likewise made better by lower interest expenses and higher interest income as a result of its deleveraging initiatives. Savings in interest expense likewise offset unrealized foreign exchange losses and higher deferred taxes.
First Gen’s consolidated revenues from the sale of electricity increased by $184 million (P12.2 billion), or 14% to $1.5 billion (P76.2 billion) compared to $1.3 billion (P64.0 billion) in the first nine months of 2017. The natural gas portfolio accounted for $919 million (P47.9 billion), or 63% of First Gen’s total consolidated revenues. Their revenues were 18% higher in the first three quarters of 2018 mainly due to higher volume sales and prices.
“We are pleased to report that First Gen’s sizable investment in new capacity with the modern San Gabriel plant started serving the power needs of Meralco’s customers in the third quarter of 2018. …San Gabriel delivers a low-cost source of electricity to Filipino consumers. Contrary to perception, First Gen is clearly proving the price competitiveness of clean low-carbon natural gas-fired power versus more polluting coal-fired power even at full baseload dispatch,” First Gen president and COO Giles Puno said.
Energy Development Corporation’s (EDC) geothermal, wind and solar revenues accounted for $476 million (P24.8 billion), or 33% of total consolidated revenues (see related story on this page).
FG Hydro, owner of the 132- MW Pantabangan-Masiway hydroelectric plants, reported flat revenues at $29 million (P1.5 billion). The hydro plants account for only 2% of First Gen’s total consolidated revenues. The absence of ancillary service sales in the first quarter of 2018 was almost completely offset by the hydro plants’ higher contracted sales volumes and higher spot market prices this year. Consequently, the recurring attributable earnings contribution of $5 million (P0.2 billion) is less than last year’s $8.5 million (P0.4 billion).