ENP Newswire - 15 August 2014
Release date- 14082014 - First Gen Corporation reported a 32.0% increase in net income attributable to the parent to USD102.6 million from USD77.7 million for the first half of 2014.
The rise was primarily due to the higher earnings of its geothermal subsidiary Energy Development Corporation ('EDC') from its 130 MW Bacon-Manito ('BacMan') and 106 MW Mindanao power plants and unrealized foreign exchange gains. The Santa Rita and San Lorenzo natural gas-fired plants (the 'First Gas Plants') also contributed higher income due to plant upgrades and partially collected insurance claims.
On a recurring basis, net income attributable to the parent was USD90.3 million, lower by 3.2% than last year's USD93.2 million due to higher interest and project development expenses for the company's growth projects, namely: the 97 MW Avion and the 414 MW San Gabriel natural gas-fired power plants that are expected to come online April 2015 and March 2016, respectively.
First Gen's consolidated revenues from the sale of electricity decreased by USD49.1 million, or by 5.0%, to US5.5 million for the first half of 2014 from US4.6 million. The First Gas Plants accounted for USD593.0 million, or 63.4% of the total consolidated revenues. EDC's revenues, which include those of First Gen Hydro Power Corporation, accounted for USD338.3 million, or 36.2%, of the total.
The First Gas Plants' revenues were 9.6% lower from the previous year's USD656.0 million due to lower average gas prices and lower dispatch. The lower electricity generated was due to the damage incurred by Santa Rita's 250 MW Unit 40 main transformer, which was re-commissioned in July 2014 after the expedited delivery and installation of a new transformer.
Despite this, the incremental effect of San Lorenzo's capacity upgrade and benefits from deferred income taxes were able to offset the drop in revenues. As a result, the First Gas Plants contributed USD58.4 million to the company's attributable net income for the first semester of 2014, higher than the previous year's USD42.5 million.
EDC's revenues were 4.2% higher than the previous period's USD328.1 million. Its revenues grew by USD13.7 million mainly due to the electricity generated by the BacMan and Mindanao power plants. Unrealized foreign exchange gains of USD8.4 million further boosted net income. EDC contributed US.9 million in attributable earnings for the period from USD52.8 million in 2013.
First Gen's earnings were, however, partially reduced by higher interest expense at both the parent and EDC due to fresh borrowings in the second half of 2013, as well as expenses related to the development of the 97 MW Avion and the 414 MW San Gabriel natural gas-fired power plants.
'Our portfolio delivered respectable numbers despite minor setbacks. BacMan generated electricity at full capacity for a few months but sustained some damage due to Typhoon Glenda. They are currently undergoing repair and we expect it to be operational in the second half with two new turbines from Japan.
The Santa Rita and San Lorenzo gas plants are now delivering at full capacity with the replacement of the transformers of Unit 40 and 60. We are also expecting delivery of a spare transformer in September to reduce possible downtime in the future. Though we are currently incurring higher development expenses in pursuing our growth projects, the new 150 MW wind farm in Burgos, the 97 MW Avion, and the 414 MW San Gabriel natural gas projects will start contributing higher revenue growth for First Gen in 2015 and 2016,' First Gen President Francis Giles B. Puno said.
First Gen Corporation
3rd Floor, Benpres Building
Exchange Road, Pasig City.
Tel: (632) 449-6400
Fax: (632) 635-2322