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MANILA, Philippines - Lopez-controlled First Gen Corp. has prepaid some P5.6 billion worth of loans, a company report said.
In a disclosure to the Philippine Stock Exchange, First Gen said the loan was acquired by its wholly-owned unit Unified Holdings Corp. (UHC).
“Further to our disclosure dated May 9, 2009 on the execution by Unified Holdings Corp. of an agreement for a three-year corporate note facility of up to P5.6 billion arranged by a consortium of banks led by BDO Capital and Investment Corp., Philippine National Bank and Rizal Commercial Banking Corp., please be informed that Unified (today) prepaid the said loan facility which had an interest rate of 9.3769 percent,” the company said.
In 2010, First Gen’s total debt went down to $1.1 billion from $1.2 billion in 2009. It also bought back and retired $74 million of its convertible bond in 2010 and paid off its P5-billion bond.
The paydown of debt resulted in lower interest expenses at $104.2 million, compared to 2009’s total interest expense of $112.1 million.
In January 2010, First Gen raised P15 billion through a rights offering to prepay some of its loans.
For 2010, First Gen’s consolidated net income went up 27 percent to $121 million from $95 million in 2009 due to higher revenues during the period.
Its net income attributable to the parent company went up to $70.2 million for 2010, up 319 percent from $16.7 million posted the prior year.
First Gen’s consolidated revenues likewise jumped to $1.2 billion, up $222.1 million or 22 percent from $1 billion.
“The substantial increase in earnings was driven by the strong operating performance of the First Gas group, First Gen Hydro Power Corp. (FG Hydro) and Energy Development Corp. These developments were complemented by the positive effects of the company’s deleveraging program,” First Gen president Giles Puno said.
The company said the reliable dispatch of First Gas’ 1,000-megawatt Santa Rita and 500-MW San Lorenzo natural gas-fired power plants were the main contributors to the increase in revenues from the sale of electricity.
The higher revenues, however, were offset by corresponding increases in the pass-through fuel charges to electricity buyers and higher operations and maintenance fees.
The First Gas plants delivered stable earnings of $130.1 million in 2010.
First Gen said there was a notable increase in equity in net earnings from associates; namely, EDC and FG Hydro in 2010.
EDC, the country’s largest operator of geothermal-fired power plants, provided higher earnings to First Gen of $52.5 million in 2010, up by $21.5 million, as compared to $31 million in the previous year.
This improvement resulted from the full-year effect of the operation of the 192.5-MW Palinpinon and 112-MW Tongonan geothermal power plants, EDC’s receipt of VAT tax credit certificates, and its lower deferred taxes.
The improvement in earnings was, however, partially offset by the impairment booked for EDC’s 49-MW Northern Negros geothermal power plant and lower revenues from the Unified Leyte geothermal power plant complex.
FG Hydro’s income contribution also increased by $8.4 million to $9.9 million from $1.5 million in 2009. The increase was due to better prices in the wholesale electricity spot market and higher dispatch of the hydro plants.
First Gen said the increase in EDC and FG Hydro’s earnings contribution was coupled with lower interest expenses at Red Vulcan Holdings Corp., the company that directly owns 40 percent of EDC.
Red Vulcan last year reduced its debt by 40 percent to P8.3 billion from P13.8 billion.
“The increase in earnings contribution from affiliates was supplemented by the company’s lower interest expenses,” First Gen said.
In a disclosure to the Philippine Stock Exchange, First Gen said the loan was acquired by its wholly-owned unit Unified Holdings Corp. (UHC).
“Further to our disclosure dated May 9, 2009 on the execution by Unified Holdings Corp. of an agreement for a three-year corporate note facility of up to P5.6 billion arranged by a consortium of banks led by BDO Capital and Investment Corp., Philippine National Bank and Rizal Commercial Banking Corp., please be informed that Unified (today) prepaid the said loan facility which had an interest rate of 9.3769 percent,” the company said.
In 2010, First Gen’s total debt went down to $1.1 billion from $1.2 billion in 2009. It also bought back and retired $74 million of its convertible bond in 2010 and paid off its P5-billion bond.
The paydown of debt resulted in lower interest expenses at $104.2 million, compared to 2009’s total interest expense of $112.1 million.
In January 2010, First Gen raised P15 billion through a rights offering to prepay some of its loans.
For 2010, First Gen’s consolidated net income went up 27 percent to $121 million from $95 million in 2009 due to higher revenues during the period.
Its net income attributable to the parent company went up to $70.2 million for 2010, up 319 percent from $16.7 million posted the prior year.
First Gen’s consolidated revenues likewise jumped to $1.2 billion, up $222.1 million or 22 percent from $1 billion.
“The substantial increase in earnings was driven by the strong operating performance of the First Gas group, First Gen Hydro Power Corp. (FG Hydro) and Energy Development Corp. These developments were complemented by the positive effects of the company’s deleveraging program,” First Gen president Giles Puno said.
The company said the reliable dispatch of First Gas’ 1,000-megawatt Santa Rita and 500-MW San Lorenzo natural gas-fired power plants were the main contributors to the increase in revenues from the sale of electricity.
The higher revenues, however, were offset by corresponding increases in the pass-through fuel charges to electricity buyers and higher operations and maintenance fees.
The First Gas plants delivered stable earnings of $130.1 million in 2010.
First Gen said there was a notable increase in equity in net earnings from associates; namely, EDC and FG Hydro in 2010.
EDC, the country’s largest operator of geothermal-fired power plants, provided higher earnings to First Gen of $52.5 million in 2010, up by $21.5 million, as compared to $31 million in the previous year.
This improvement resulted from the full-year effect of the operation of the 192.5-MW Palinpinon and 112-MW Tongonan geothermal power plants, EDC’s receipt of VAT tax credit certificates, and its lower deferred taxes.
The improvement in earnings was, however, partially offset by the impairment booked for EDC’s 49-MW Northern Negros geothermal power plant and lower revenues from the Unified Leyte geothermal power plant complex.
FG Hydro’s income contribution also increased by $8.4 million to $9.9 million from $1.5 million in 2009. The increase was due to better prices in the wholesale electricity spot market and higher dispatch of the hydro plants.
First Gen said the increase in EDC and FG Hydro’s earnings contribution was coupled with lower interest expenses at Red Vulcan Holdings Corp., the company that directly owns 40 percent of EDC.
Red Vulcan last year reduced its debt by 40 percent to P8.3 billion from P13.8 billion.
“The increase in earnings contribution from affiliates was supplemented by the company’s lower interest expenses,” First Gen said.
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