First Gen posts attributable net income of USD200-M in 2016

Clean and renewable electricity producer, First Gen Corp., has reported a USD200 million net income attributable to equity holders of the parent for 2016, up 19 percent from the USD167 million it made in 2015. (Photo: First Gen Corporation/Facebook)

MANILA—Clean and renewable electricity producer, First Gen Corp., has reported a USD200 million net income attributable to equity holders of the parent for 2016, up 19 percent from the USD167 million it made in 2015.

“Though 2016 was a year not without its challenges, it was also the year First Gen achieved its highest net income,” First Gen President and Chief Operating Officer Francis Giles Puno said in a media release.

“We are optimistic that this trend will continue with the addition of our two newest natural gas–fired plants — the 414-MW (megawatt) San Gabriel Flex Plant and the 97-MW Avion Peaking Plant — that will deliver full-year operations this year, alongside marked improvements in the operations of EDC’s (Energy Development Corp.) 100 percent renewable portfolio.”

According to the Lopez Group company, the San Gabriel Flex Plant, and the EDC’s 140-MW BacMan geothermal plant booked non-recurring income in 2016.

EDC and First Gen Hydro Power Corp. (FG Hydro) both delivered higher earnings that were supplemented by cost-saving initiatives throughout the company, it said.

According to First Gen, its consolidated revenues from the sale of electricity decreased to USD1.56 billion last year, compared to USD1.84 billion in the previous year.

The 1,000-MW Santa Rita and the 500-MW San Lorenzo natural gas-fired power plants accounted for USD827 million, or 53 percent of the company’s total consolidated revenues, the company reported, noting that their revenues were 23 percent lower than their USD1.08 billion contribution in 2015, mainly due to lower fuel pass-through prices, worsened by the lower combined dispatch of the gas plants at 75 percent in 2016 against 81 percent in 2015.

The corporation further said that the San Gabriel plant recorded an income of USD36 million from delay liquidated damages that was partially offset by expenses, while the Avion Peaking Plant generated commissioning income last year. The earnings contribution from the natural gas portfolio increased by USD21 million to USD142 million in 2016.

EDC’s geothermal, wind and solar revenues meanwhile accounted for USD676 million, or 43 percent of total consolidated revenues, First Gen said, adding that from USD717 million in 2015, EDC’s revenues declined by USD41 million, mainly due to an unfavorable effect of foreign exchange translation.

The actual decline in revenues from lower spot market prices was USD11 million, out of USD41 million, despite the power plants’ higher dispatch, the company said in the release.

EDC’s attributable earnings of USD89 million in 2016 came in higher from USD78 million in 2015, mostly due to drops in operating, interest, and administrative expenses, augmented by a receipt in insurance claims from its BacMan power plant.

The 132-MW Pantabangan-Masiway hydroelectric plants’ revenues was 16 percent better at USD48 million, or 3 percent of the total consolidated revenues.

According to First Gen, FG Hydro showed a growth in revenues of USD7 million last year against 2015’s USD42 million due to the higher dispatch of its power plants and higher ancillary service sales. Consequently, the attributable earnings contribution of FG Hydro was higher by USD5 million at USD14 million.

On a recurring basis, First Gen’s attributable net income for 2016 was flat at USD162 million, the company said. As most of the platforms’ power plants in the portfolio benefited from higher dispatch, these were offset by lower spot market prices. These likewise offset the gains made from cost-containment initiatives, it added.