First Gen Corporation’s consolidated revenues from the sale of electricity in the first quarter of 2022 were higher at P29.1 billion ($570 million), an 18% positive change of P5.8 billion ($87 million) from P23.2 billion ($483 million) in 2021.
The higher revenues came from higher electricity sales supplemented by elevated fuel prices and Wholesale Electricity Spot Market prices.
The natural gas portfolio accounted for 62% of First Gen’s total consolidated revenues. Energy Development Corporation’s (EDC) geothermal, wind and solar revenues accounted for 33% and the hydro plants for 4%.
“First Gen generated more power in 1Q22 versus 1Q21. We reached another milestone this first quarter as EDC’s 3.6- megawatt (MW) Mindanao 3 plant started operating last March,” First Gen president and COO Giles Puno said.
“However, both Avion and EDC were affected by unplanned outages. In EDC’s case, it led to high replacement power costs as typhoon Odette debilitated transmission capacity despite the plants’ ability to produce power. EDC was able to wheel out its power by mid-January. As for the rest of the natural gas fleet, it was plagued by gas interruptions at the Malampaya field. This resulted in the importation of expensive liquid fuel. To address this recurring issue, the importation of LNG [liquefied natural gas] can happen by 4Q22 when the LNG terminal operates,” Puno added.
The company reported lower recurring net income in the first quarter of 2022 of P3.0 billion ($59 million) in comparison to P3.8 billion ($78 million) for the same period last year. The natural gas and geothermal platforms both suffered from a drop in operating income.
The natural gas platform had a 27% decrease in recurring earnings for the first three months of 2022 to P2.0 billion ($38 million) from P2.5 billion ($52 million) in 2021. Including nonrecurring items, the gas platform’s attributable net income to parent decreased to P2.2 billion ($43 million) for 2022 from P2.8 billion ($57 million) in 2021.
Geothermal, wind and solar
The geothermal, wind and solar platforms under EDC likewise suffered from outages, mostly attributable to typhoon Odette that led to transmission constraints, as well as lower wind generation from Burgos for 1Q22 in comparison to the same period last year. Moreover, the income tax holiday of the Burgos project expired in November 2021, which likewise led to lower earnings.
EDC contributed both recurring and attributable earnings at P0.9 billion ($17 million) for 1Q22, 38% lower than its recurring and attributable income last year of P1.3 billion ($27 million).
The hydro platform’s contribution to recurring and nonrecurring earnings both grew to P0.5 billion ($10 million) for the first 90 days of 2022 from P0.2 billion ($5 million) last year. The 132.8- MW Pantabangan-Masiway power plants generated higher operating income from their contract with Meralco and merchant sales.