FIRST Gen Corporation reported a recurring net income attributable to equity holders of $217 million (P11.3 billion) in the first three quarters of 2019 from the operations of its 3,492-megawatt (MW) clean and renewable portfolio. This was a 21% or $37 million (P1.9 billion) jump from its $180 million (P9.4 billion) in earnings from the same period in 2018.
Energy Development Corporation (EDC) contributed recurring earnings from its geothermal, wind and solar platform of $67 million (P3.5 billion) in the first nine months of 2019, better by $14 million (P0.7 billion) in comparison to $52 million (P2.7 billion) in 2018.
First Gen’s natural gasfired power plants delivered increased recurring earnings for the period. While the two newer gas plants—the 420-MW San Gabriel and 97-MW Avion—generated higher electricity sales, it was Avion that provided a larger increase in earnings as the merchant plant enjoyed higher dispatch and higher selling prices in 2019.
From a recurring attributable net income to parent of $142 million (P7.4 billion) in the first nine months of 2018, the gas platform generated $151 million (P7.9 billion) for the same period in 2019, which was an increase of 7% or $9 million (P0.5 billion).
The hydro platform continued to perform positively with a recurring earnings contribution higher by $8 million (P0.4 billion) at $13 million (P0.7 billion) for the period due to higher sales to the Wholesale Electricity Spot Market (WESM) and ancillary services.
First Gen’s net income attributable to equity holders in the first three quarters of 2019 was $220 million (P11.5 billion). This was $69 million (P3.6 billion) or 46% better than the earnings in the same period in 2018 of $151 million (P7.9 billion).
Fir Gen's Consolidated revenues from the sale of electricity increased by $154 million (P8.0 billion) or 11% to $1,616 million (P84.2 billion) compared to $1,462 million (P76.2 billion) in the first nine months of 2018. The natural gas portfolio accounted for 63% of First Gen’s total consolidated revenues. Their revenues were 10% higher in the first three quarters of 2019 mainly due to higher average natural gas prices coupled with improved plant dispatch.
EDC’s geothermal, wind and solar revenues accounted for $547 million (P28.5 billion) or 34% of First Gen’s total consolidated revenues in the first three quarters of 2019. Of the $547 million, 94% can be attributed to the geothermal platform while the remainder is from the wind and solar projects. From $476 million (P24.8 billion) in the first nine months of 2018, EDC’s revenues improved by $71 million (P3.7 billion) mainly due to the performance of the Leyte and Negros plants. This was supplemented by higher Bacman revenues in the first three quarters of 2019, though partially offset by lower revenues from the Mindanao and Burgos plants. First Gen Hydro Power Corporation delivered better revenues by $9 million (P0.5 billion) or 31% higher from $28 million (P1.5 billion) to $37 million (P2.0 billion) due to increased sales to WESM. Moreover, there was an absence of ancillary service revenues in the first quarter of 2018, when it was awaiting the approval of its ancillary services procurement agreement. The hydro plants account for 2% of First Gen’s total consolidated revenues.
“We are pleased to report that First Gen’s thrust of clean, low-carbon and renewable power continues to result in laudable earnings for the first nine months of 2019. We fully expect to end the year with milestone earnings,” First Gen president and COO Giles Puno said.