By: Ronnel W. Domingo - 01:10 AM May
10, 2017
First Gen Corp. saw its recurring
net income fall 11 percent year-on-year in the first quarter to $45 million
this year from $51 million last year amid weak prices at the spot market.
In a statement, First Gen said its
merchant power plants suffered from lower revenue due to seasonally soft prices
at the Wholesale Electricity Spot Market (WESM), driven by the cooler weather.
Even then, the Lopez group unit said
it had exceeded its targets as the various subsidiaries secured more off-take
contracts and reduced expenses.
Additionally, First Gen said its
debt-reduction program had started to pay off with a decline in interest
expenses.
“First Gen is optimistic it would
catch up in the following quarters, especially during the scorching summer
months,” said First Gen president and chief operating officer Francis Giles B.
Puno.
Puno noted that First Gen’s natural
gas plants provided a reliable back-up to the many aging base-load coal plants
operating in the grid.
“We intend to continue the positive
changes we have made throughout First Gen for the rest of the year,” he said.
“San Gabriel and Avion are projected
to contribute higher to earnings this second quarter,” he added, respectively
referring to the 414-megawatt mid-merit plant and the 97-MW peaking plant which
are both in Batangas.
Also, First Gen’s consolidated
revenue from the sale of electricity inched up by 2 percent quarter-on-quarter
to $428 million in the first quarter of 2017 from $420 million in the first
quarter-ended last year.
The natural gas plants contributed
more than half or 54 percent of consolidated revenues at $233 million. This
meant an increase of 2 percent year-on-year thanks to fresh contributions from
San Gabriel and Avion.
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