First Gen Corporation reported increased revenues from the sale of electricity in the first nine months of 2022 at $1,996 million (P105.2 billion), a 24% positive change of $390 million (P27.1 billion) from $1,606 million (P78.1 billion) in the previous year.
The higher revenues are derived from electricity sales attributed to elevated fuel and Wholesale Electricity Spot Market (WESM) prices. The natural gas portfolio accounted for 65% of First Gen’s total consolidated revenues, while 31% came from Energy Development Corporation’s (EDC) geothermal, wind and solar plants. The remaining 4% balance comes from the hydro plants.
“First Gen’s third quarter earnings saw EDC make a recovery from higher spot market prices and inflation-adjusted prices for its power purchase agreements. The natural gas platform, however, continues to be beset by fuel supply curtailment from Malampaya that required us to use more costly liquid fuel. The expected commercial operations of our LNG terminal in the second half of 2023 will help address fuel supply security issues,” First Gen president and COO Giles Puno said.
The company reported an 8% reduction in recurring net income in the three quarters of 2022 to $194 million (P10.2 billion) in comparison to $211 million (P10.2 billion) in 2021.
On a translated Philippine peso basis, the US dollar books of First Gen have benefited from foreign exchange translation gains with the depreciation of the local currency as evidenced by the translated Philippine peso figures. As a result, First Gen’s recurring net income was flat at P10.2 billion.
The natural gas platform reported a 13% decrease in recurring earnings for the first nine months of 2022 to $142 million (P7.5 billion) from $163 million (P7.9 billion) in 2021. The gas platform also paid increased income taxes compared to the previous year.
The geothermal, wind and solar platform under EDC enjoyed higher sales and operating income mainly from Unified Leyte’s increased WESM sales and higher electricity prices from its contracts.
EDC’s recurring and attributable earnings at $66 million (P3.5 billion) for the first three quarters of 2022 were 6% higher than its recurring income of $62 million (P3.0 billion) in 2021.
The hydro platform’s contribution to First Gen’s recurring and nonrecurring earnings was at $6 million (P0.3 billion) for the first nine months of 2022, which was almost unchanged from last year.
The 132-megawatt Pantabangan-Masiway power plants generated lower revenues from a reduced volume of electricity sold, but still delivered unchanged operating income due to lower replacement power costs. The hydro platform’s selling prices were likewise higher this period.