First Gen's 2014 income surges to $193 million

ABS-CBN News

Posted at Mar 13 2015 11:19 AM | Updated as of Mar 13 2015 11:05 PM

MANILA – Lopez-led First Gen Corp. posted a 64 percent increase in profits in 2014 on the back of higher earnings from its natural gas plants and geothermal plants.

First Gen said its net income attributable to the parent surged to $193.2 million last year from the $118.1 million in 2013.

“The improved financial performance was driven by higher earnings contributions from the Santa Rita and San Lorenzo natural gas power plants and Energy Development Corp.’s (EDC) geothermal plants,” the firm said in a disclosure to the stock exchange on Friday.

However, the firm said the improvement was partially offset by lower earnings contribution from First Gen Hydro Power Corp. due to lower water levels.

EDC’s revenues accounted for $651.7 million, or 34.3 percent, of total revenues while FG Hydro contributed $36.6 million of revenues, or 1.9 percent.

EDC’s consolidated revenues increased by $81.3 million due to electricity generated by the BacMan and Nasulo power plants; a reduction in foreign exchange losses; and receipt of insurance claims.

“First Gen’s thrust to grow its clean and renewable platform has gained significant momentum in 2014. The Bacman and Nasulo geothermal projects of EDC were positive turnaround stories for 2014 and, together with the new 150 MW Burgos wind project, will increase revenues moving forward,” First Gen president Francis Giles Puno said.

For 2015, Puno said the company is looking to fast-track the delivery of the 97 MW Avion natural gas-fired project to address the power supply shortage.

First Gen is also “progressing well” with the construction of the 414 MW San Gabriel natural gas plant to be operational in the summer of 2016.

“Despite the reduced earnings from the Pantabangan hydro plant, we hope to get moving on our run-of-river projects in 2015,” Puno said.

“First Gen’s portfolio of power plants plays a vital role in the security of power supply. It is for this reason that we continue to develop and push projects that will provide solutions to the country’s power issues,” he added.