First GenFirst Gen Corporation ended 2020 with P13.7 billion ($276 million), a 7% decline in net income attributable to equity holders from the operations of its 3,492-megawatt (MW) clean, low-carbon and renewable portfolio. The company also delivered lower operating expenses, interest expenses, and incurred foreign exchange gains.
It had P15.4 billion ($296 million) in earnings from the same period in 2019.
The natural gas platform suffered from a 7% decrease in earnings for the year to P9.3 billion ($187 million) from P10.4 billion ($201 million) in 2019. From a recurring attributable net income to parent of P10.1 billion ($194 million) in 2019, the gas platform generated P9.2 billion ($184 million) for 2020.
Energy Development Corporation (EDC) contributed attributable earnings from its geothermal, wind and solar platforms amounting to P5.3 billion ($106 million) in 2020, 5% higher in comparison to the P5.2 billion ($101 million) it earned in 2019.
The company, however, had a lower recurring attributable net income to parent of P4.5 billion ($90 million) for the year, while it generated P5.1 billion ($98 million) in 2019.
The hydro platform’s attributable earnings contribution fell by 90%, or P0.6 billion ($12 million), to P0.1 billion ($1 million) for 2020 from P0.7 billion ($14 million) in 2019 mainly due to lower prices at the Wholesale Electricity Spot Market, though mildly offset by higher ancillary service sales. The hydro platform’s recurring earnings in 2020 were the same at P0.1 billion ($1 million).
First Gen’s recurring net income attributable to equity holders in 2020 was P12.6 billion ($252 million). This was P2.2 billion ($32 million) or 11% less than the 2019 earnings of P14.8 billion ($284 million) due mainly to lower electricity sales across all platforms.
Consolidated revenues from the sale of electricity in 2020 declined by P20.6 billion ($321 million) or 15% to P91.2 billion ($1,830 million) compared to P111.8 billion ($2,151 million) in 2019. All of the company’s platforms were affected by the decline in demand brought by the pandemic that resulted in lower power prices.
The natural gas portfolio accounted for 59% of First Gen’s total consolidated revenues. EDC’s geothermal, wind and solar revenues accounted for 38% of First Gen’s total consolidated revenues in 2020, while the hydro plants accounted for 2%.
“While we are grateful that First Gen was marginally affected by the decline in power demand resulting from the pandemic, we are still looking forward to a better 2021. Not only do we expect the country to climb its way up to recovery, but we are also preparing for this by, among other things, commencing the construction of the country’s first LNG terminal next month which puts the company in a good position for expanding its gas portfolio especially after the recent DOE [Department of Energy] coal moratorium,” First Gen president and COO Giles Puno said.