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Power sales fuel First Gen Q2 profit surge

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FIRST GEN Corp. increased its net income attributable to equity holders of the parent firm by 87.4% to $84.67 million in the second quarter, as the Lopez-led company recorded a strong growth in its power sales.

Based on its financial report, revenues from the sale of electricity reached $575.14 million, higher by 16.7% from a year ago, while other income was a positive $3.1 million, reversing charges of $6.07 million a year ago previously.

In the first half, the listed energy company recorded an attributable net income of $165.45 million, up 95% from $84.86 million previously. Electricity sales rose 15.3% and hit $1.11 billion from P962.58 million.

“First Gen’s focus on clean, low carbon and renewable energy continues to pay off as our first semester results overtakes last year’s. For the remainder of the year, we expect all the platforms to continue to deliver stable earnings,” First Gen President and Chief Operating Officer Francis Giles B. Puno said in a statement.

He said work on the development of the country’s first liquefied natural gas (LNG) terminal continues. He added with the Energy department declaring the project as one of national significance, First Gen “will endeavor to deliver this project swiftly and efficiently given its criticality to the country’s energy security.”

The company said recurring attributable net income of the parent rose 36% to $156 million, as its portfolio of clean fuel platforms “all performed notably during the period.” The US dollar is the firm’s functional currency.




First Gen subsidiary Energy Development Corp. recorded recurring earnings from its geothermal, wind and solar platform of $49 million, higher by 48% from the previous year as its Unified Leyte and Tongonon geothermal plants continued to normalize their operations after the damage brought by a typhoon in December 2017.

First Gen said all four of its natural gas-fired power plants delivered higher recurring earnings. While the two older plants — the 1,000-megawatt (MW) Santa Rita and the 500-MW San Lorenzo — benefited from lower operating expenses, the newer ones — the 420-MW San Gabriel and the 97-MW Avion —generated higher electricity sales.

The company said its hydro platform also registered higher earnings at $13 million as it gained from higher sales to the wholesale electricity spot market and ancillary services.

On Thursday, shares in First Gen closed 0.78% up at P25.70 each.

EARNINGS OF LOPEZ-LED FIRM RISE
Separately, Lopez Holdings Corp. reported a second-quarter net income attributable to the parent firm of P1.89 billion, up 90.9% from P990 million previously.

Revenues rose 13% to P35.14 billion from P31.11 billion, the firm’s financial report showed. The holding company represents the Lopez family’s investments in major development sectors.

In the first half, Lopez Holdings said net income attributable to equity holders of the parent reached P4.18 billion, 99.7% higher than the level a year ago.

The company said the “steady performance” of the energy group under associate First Philippine Holdings Corp. (FPH), as well as the “strong recovery” of investee ABS-CBN Corp. accounted for the results.

Consolidated revenues rose by 16% to P67.91 billion. FPH registered a 76% increase in attributable net income and 35% rise in recurring net income as electricity sales expanded by 20%, the firm said. ABS-CBN’s net income rose by 98% as advertising revenues improved by 18%

As of June 30, Lopez Holdings owned 51% of FPH and 56% economic interest in ABS-CBN.

On Thursday, shares in Lopez Holdings were down 0.45% to P4.40 each. — Victor V. Saulon

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