First Gen Corporation concluded the first nine months of 2021 with an 11% improvement to P10.3 billion ($212 million) in recurring net income attributable to equity holders from the operations of its 3,495-megawatt (MW) clean, low-carbon and renewable portfolio.
The company benefited from higher electricity sales, led by the 97-MW Avion natural gas-fired power plant. This was supplemented by lower interest expenses and taxes due to the CREATE law. First Gen had P9.6 billion ($190 million) in recurring earnings from the same period in 2020.
“Our clean and renewable energy platforms generated higher revenues for the nine months of 2021 as power demand recovered to pre-pandemic levels. Revenue growth also reflected the higher fuel commodity prices experienced all over the world,” First Gen president and COO Giles Puno said.
He added: “We likewise witnessed our gas-fired plants increasingly running on liquid fuel due to gas supply restrictions from the Malampaya field. We expect to address this volatility and uncertainty once our LNG [liquefied natural gas] import terminal operates in the last quarter of next year.”
20% increase for natgas
The natural gas platform delivered a 20% increase in recurring earnings for 9M21 to P7.9 billion ($163 million) from P6.8 billion ($135 million) in 9M20.
The 1,000-MW Santa Rita and the 500-MW San Lorenzo reaped the benefits of lower income tax rates under the CREATE law; these were partially offset by higher taxes paid by San Gabriel as its income tax holiday expired in March 2020.
From an attributable net income to parent of P6.9 billion ($137 million) in the first three quarters of 2020, the gas platform increased to P7.7 billion ($159 million) for the past nine months of 2021.
Energy Development Corporation (EDC) contributed recurring attributable earnings from its geothermal, wind and solar platform amounting to P3.0 billion ($62 million), 6% lower than its recurring income last year of P3.3 billion ($66 million).
The renewable energy company’s attributable net income to parent of P3.4 billion ($70 million) for the first nine months of 2021 was little changed from the same period in 2020 due to the collection of insurance claims in 2021.
The hydro platform’s recurring earnings contribution grew to P0.3 billion ($6 million) for 9M21. The 132.8-MW Pantabangan-Masiway power plants generated higher revenues as the commencement of its contract with Meralco was augmented by merchant sales. The platform’s attributable earnings in 9M21 were likewise higher at P0.3 billion ($6 million) from P0.2 billion ($3 million) in the same period last year.
First Gen’s consolidated revenues from the sale of electricity in 9M21 were higher at P78.1 billion ($1,606 million), an 18% positive change of P9.6 billion ($243 million) from P68.6 billion ($1,363 million) in the first three quarters of 2020.
The natural gas portfolio accounted for 59% of First Gen’s total consolidated revenues in 9M21. EDC’s geothermal, wind and solar revenues accounted for 35%, while the hydro plants accounted for 4%.