Monday, November 19, 2018

First Gen posts 45% income rise to $180 M



Published By Myrna M. Velasco

Owing it primarily to the earnings upturn of its gas business segment, the recurring earnings of Lopez firm First Gen Corporation had been on robust climb of 45 percent to US$180 million or P9.4 billion within this year’s January to September financial review period.
That merited US$56 million or P3.2-billion income rise from US$124 million or P6.2 billion in the same period last year.
On the whole, the company indicated that attributable net income had also been 50 percent higher in the three quarters to US$151 million or P7.9 billion vis-à-vis outcome in the same period last year.
In terms of consolidated revenues, the Lopez firm logged 14-percent rise or US$184 million higher to US$1.5 billion from US$1.3-billion level in 2017.
In a statement to the media, First Gen noted that its gas platform posted surge in earnings – reaching about US$140 million or P7.3 billion from the year-ago level of US$87 million or P4.4 billion.
On the sphere of revenues, the company’s gas assets accounted for 63 percent of the total or the chunk of US$919 million (equivalent P47.9 billion) share in the pie.
The Lopez firm noted that its newest gas-fired fleet, the 414-megawatt San Gabriel plant, had been considerably its star performer during the period – with it yielding higher dispatch and turning in higher revenues both from spot market sales and on its power supply agreement with Manila Electric Company.
First Gen President and Chief Operating Officer Francis Giles B. Puno enthused that the San Gabriel plant “delivers low-cost source of electricity to consumers,” and combatively qualifying that “contrary to perception, First Gen is clearly proving the price competitiveness of clean low carbon natural gas-fired power versus more polluting coal-fired power even at full baseload dispatch.”
The company added overall financial performance improved due to “lower interest expenses and higher interest income as a result of the company’s deleveraging initiatives.”
It further emphasized that “savings in interest expense offset unrealized foreign exchange losses and higher deferred taxes.”
On the hydro generation portfolio of the company, chiefly its 132MW Pantabangan-Masiway plant, revenues had been flattish at US$29 million due to lack of ancillary services sales in the first quarter of the year, but such had been offset by higher contracted volume and relatively higher spot market prices.

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