First Gen income up 38% to $162M in first 9 months

Adestructive typhoon and lower revenues from its hydro assets may have ignited slight operational drawbacks, but Lopezowned First Gen Corporation still managed to pull its net income on the upside, having logged a substantial 37.7-percent growth to US$162.8 million in the first nine months from last year’s comparative figure of $118.2 million.

The company, in a press statement, has explained that the higher earnings from its Sta. Rita and San Lorenzo gas plants partly pulled up bottom line figure, in addition to the favorable financial performance of subsidiary Energy Development Corporation.

But it noted that what could have been a heftier outcome “was partially offset by lower earnings contribution from First Gen Hydro Corporation due to lower water levels.”

First Gen has expounded though that there had been 4.1percent drop in revenues for its gas plants “due to lower average gas prices and lower dispatch.”

From January to September, the company reported revenues amounting to $943 million on sold capacities from the gasfed plants.

The company added that “the lower electricity generated was due to the damage incurred by Sta Rita’s 250MW Unit 40 main transformer last February 2014, which was re-commissioned in July 2014 after the installation of a new transformer.” First Gen President Francis Giles B. Puno stressed that “despite setbacks like typhoon Glenda, there were significant positive developments” for the company this year.

He cited the commencement of full commercial operations of its 150MW Burgos wind power facility as well as the return to operation of its 130MW Bacon-Manito plant; plus the commissioning of the 49-MW Nasulo geothermal facility in this year’s third quarter.

These facilities coming on stream have been giving the Lopez firm heaved confidence that their financial performance will continue to be on the upturn next year.

“We expect these projects to contribute a full year’s worth of revenues in 2015,” Puno stressed. Yet next year may not still be the banner period for First Gen with new capacities anticipated coming on-line by 2016 – and that would all point to possible earnings getting better in the next few years.