First Gen Corp. said Tuesday net income attributable to equity holders of the parent company jumped 42 percent in the first nine months to $170 million from $120 million in the same period in 2015.
First Gen said in a disclosure to the stock exchange its newest natural gas-fired power plant”•the 414-megawatt San Gabriel Flex Plant”•booked an income from liquidated damages caused by its construction delay while Energy Development Corp. and First Gen Hydro Power Corp. both delivered higher earnings.
First Gen’s consolidated revenues from the sale of electricity decreased to $1.17 billion in the first three quarters from $1.4 billion a year earlier.
“Not only is power from natural gas competitively-priced, it is also the cleanest among fossil fuels. Moreover, its operating capabilities are the most ideal for our consumer-dominated load profile. These plants were built specifically to serve our grid’s unique demand requirements,” First Gen president and chief operating officer Francis Giles Puno said.
First Gen said on a recurring basis, attributable net income in the first nine months was flat at $128 million.
First Gas plants accounted for $632 million, or 54 percent of First Gen’s total consolidated revenues.
First Gas revenues were 24 percent lower than its contribution of $834 million in the same period in 2015 on lower fuel pass-through prices, worsened by the slightly lower combined dispatch of the gas plants at 79 percent versus 81 percent in 2015.
San Gabriel plant recorded $53 million in delay liquidated damages and unrealized foreign exchange gains.
The 97-MW Avion natural gas-fired power plant declared commerciality on Sept. 26, hence it generated both commissioning and operating income during the third quarter.
The earnings contribution of the natural gas-fired plants increased $41 million to $130 million in the first nine months.
EDC’s geothermal, wind and solar revenues accounted for $500 million or 42 percent of total consolidated revenues.
EDC’s revenues declined $30 millionin the nine month period, or 6 percent from $530 million a year ago, mainly due to an unfavorable effect of foreign exchange as First Gen translates EDC’s peso-denominated revenues into US dollars to conform to First Gen’s functional currency reporting of its financial statements.
EDC’s actual revenue contributions in Philippine peso declined by P298 million (or $6 million) due to lower spot market prices despite the higher dispatch of its power plants.
First Gen, however, said EDC’s attributable earnings of $67 million in the first three quarters came in higher from $60 million last year as the drop in revenues was matched by declines in operating and interest expenses, supplemented by a receipt in insurance claims from its Bacon-Manito geothermal project.
