First Gen earnings surge 64% to $193M in 2014

MANILA, Philippines - Lopez-owned power generation company First Gen Corp. reported a 64- percent increase in its 2014 net income to $193.2 million from $118 million the prior year.

In a disclosure to the Philippine Stock Exchange First Gen attributed the improved financial performance to higher earnings contributions from its 1,000-megawattt Santa Rita and 500-MW San Lorenzo natural gas power plants in Batangas as well as from the geothermal plants of its subsidiary Energy Development Corp. (EDC).

Net income rose despite a decrease in consolidated electricity revenues by 0.1 percent to $1.902 billion in 2014 from $1.904 billion in 2013.

In terms of revenue share, the First Gen gas plants accounted for $1.205 billion or 63.3 percent of total consolidated revenues.

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

The company attributed the lower revenues from First Gen’s gas plants to Santa Rita’s 250-MW Unit 40 main transformer damage in February 2014 after the installation of a new transformer.

Nevertheless, this was offset by San Lorenzo’s upgraded capacity, receipt of insurance claims, and the full-year contribution of Unit 60’s operations.

As a result, the First Gen gas plants contributed $121.5 million to the company’s net income for 2014, higher than the previous year’s $81.9 million, First Gen said.

Similarly, EDC’s consolidated revenues grew by $81.3 million mainly due to electricity generated by the Bacon-Manito plants  and Nasulo power plants.

First Gen president Francis Giles Puno said the company’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,” he said.