Published
By Myrna M. Velasco
With brisk sales from
its gas-fired power assets, First Gen Corporation logged record-high increase
of 51 percent on its recurring net income (RNI) to US$243 million last year
from the leaner level of US$161 million in 2017.
After factoring in
preferred shares dividend payout, the Lopez firm noted that its adjusted
recurring net income hovered at US$221 million, which is significantly higher
by 66 percent from the previous year’s US$133 million.
The Lopez firm mainly
attributed such robust financial outcome to the higher earnings fetched by its
414-megawatt San Gabriel gas plant – which had not only posted top-notch
performance on capacity trading at the Wholesale Electricity Spot Market (WESM)
but also had its capacity finally underwritten by a bilateral contract with
Manila Electric Company.
“San Gabriel’s
recurring net income made a complete turnaround as a result of its strong spot
market sales in first half 2018 and the start of its PSA (power supply
agreement) sales to Meralco in June 2018,” First Gen has emphasized.
Revenues from that
particular plant climbed by hefty 102 percent to US$199 million from the
year-ago level of US$99 million. Recurring net income was on a gigantic rise of
724 percent to US$43 million from a relatively dismal US$7.0 million in 2017.
In addition, the
1,000MW Santa Rita and 500MW San Lorenzo gas plants of the Lopez conglomerate
registered increases on their net dependable capacity – all that while the
company also successfully achieved target of trimming interest expenses.
“The 1,500MW Santa Rita
and San Lorenzo plants generated higher recurring net income driven by their
higher net dependable capacity and lower interest expenses in 2018,” the
company expounded.
For these two major
gas-fired power generation assets of the company, revenues had grown 11 percent
to US$1.024 billion vis-à-vis the previous year’s US$920 million.
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