First Gen Corp. saw its net income attributable to its parent grow by 29% year on year to P4.01 billion ($84 million) in the first quarter, thanks to higher recurring earnings from its natural gas and renewable energy (RE) portfolios.
In a statement, the Lopez-led power generation company said it generated P3.8 billion ($78 million) in recurring net income in the first three months of 2021, a 21% increase from a year ago’s P3.3 billion ($65 million), “from the operations of its 3,495 MW clean, low-carbon, and renewable portfolio.”
First Gen said it also benefited from new contracts, and lower operating and interest expenses.
The natural gas platform reported a 35% rise in recurring earnings to P2.5 billion ($52 million) year-on-year due to higher electricity sales and lower corporate income tax rates afforded to its natural gas plants.
“The 97 MW Avion power plant enjoyed higher electricity sales due to its ancillary services procurement agreement that commenced in June 2020, while the other natural gas-fired plants reaped the benefits of lower income tax rates under the new CREATE (Corporate Recovery and Tax Incentives for Enterprises Act),” First Gen said.
However, these were slightly offset by lower generation from its 420-MW San Gabriel power plant in Batangas.
First Gen said that its gas platform’s attributable net income to its parent rose by 40% to P2.8 billion ($57 million) in the first three months ending March.
The natural gas portfolio accounted for 55% of First Gen’s total consolidated revenues.
Meanwhile, Lopez-led power generation arm’s unit Energy Development Corp. (EDC) saw recurring attributable earnings of P1.3 billion ($27 million) in the first quarter, 4% higher year on year. The amount comes from EDC’s geothermal, wind and solar platforms.
First Gen said that the feed-in-tariff (FiT) rate adjustments, which the energy regulator approved for EDC’s Burgos wind and solar projects covering the years 2016 to 2020, contributed to an increase in the firm’s first quarter revenues.
The government’s FiT scheme aims to encourage the development of emerging renewables power sources by offering a fixed subsidy to RE developers.
EDC’s geothermal, wind, and solar revenues make up 40% of First Gen’s total consolidated revenues during the three months ending March.
Meanwhile, First Gen said that its hydropower platform’s recurring earnings remained unchanged at P0.2 billion ($5 million) compared to how it fared in the same period last year. The company’s hydro plants accounted for 5% of First Gen’s consolidated revenues.
Total revenues from the firm’s electricity sales in the first quarter was “almost flat” at P23.3 billion ($483 million).
“The year 2021 is looking to be a better year, although we recognize that the recent surge and newly-imposed lockdowns has made recovery slower. Nonetheless, we want to move forward and work on projects that will support the economy and increase employment,” First Gen President and Chief Operating Officer Francis Giles B. Puno was quoted as saying.
Shares of First Gen in the local bourse shed 0.8% or 25 centavos to close at P31 each on Friday. — Angelica Y. Yang
