First Gen Corporation reported increased revenues in 2022 at $2,667 million (P144.1 billion), a 23% positive change of $500 million (P37.8 billion) from $2,167million (P106.3 billion) in the previous year. The higher revenues are derived from an increased volume of electricity sales as well as elevated fuel and Wholesale Electricity Spot Market prices.
The natural gas portfolio accounted for 66% of First Gen’s total consolidated revenues, while 31% came from Energy Development Corporation’s (EDC) geothermal, wind and solar plants. The remaining 3% came from the company’s hydro plants.
The company reported a 5% increase in recurring net income in 2022 to $265 million (P14.3 billion) in comparison to $252 million (P12.4 billion) in 2021.
“First Gen managed to produce better earnings for 2022 despite lower earnings in the first nine months. We saw EDC make a strong recovery from the better performance of its geothermal plants, while the hydro platform delivered stable income. The natural gas platform was able to contain its fuel supply curtailment issues from Malampaya, and was able to sell more power in 2022. This led to a minimal decline in net income in the gas portfolio,” First Gen president and COO Giles Puno said.
The natural gas platform reported a 4% decrease in recurring earnings for 2022 to $190 million (P10.3 billion) from $198 million (P9.7 billion) in 2021. The 97-megawatt Avion power plant’s Unit 1 experienced unscheduled outages due to turbine damage in December 2021 and was brought back to operations by February 2022. High fuel prices negatively affected Avion’s margins for its merchant power sales. The gas platform also paid increased income taxes and increased interest expense compared to the previous year due to the high interest rate environment.
EDC’s recurring and attributable earnings at $97 million (P5.2 billion) for 2022 were 18% higher than its recurring income of $82 million (P4.0 billion) in 2021.
The hydro platform’s contribution to First Gen’s recurring earnings, on the other hand, was at $4 million (P209.4 million) for 2022, an improvement of 6% from its 2021 recurring income.