August 13, 2024 | 12:00am
MANILA, Philippines — First Gen Corp. of the Lopez Group saw a double-digit drop in earnings in the first six months, mainly due to cooler contributions from the geothermal business.
The company reported a recurring net income of $150 million in the first half, 10 percent lower than the $167 million earned in the same period in 2023.
Consolidated revenues slipped by 0.7 percent to $1.28 billion from $1.29 billion amid lower volumes of electricity sold across all platforms, except hydro.
“Though First Gen started the year slow with the expiry of San Gabriel’s contract with Meralco, it is making some headway in recovery through WESM (wholesale electricity spot market) sales,” First Gen president and COO Francis Giles Puno said.
The natural gas portfolio accounted for 67 percent of First Gen’s topline, while 30 percent came from the geothermal, wind and solar facilities of subsidiary Energy Development Corp.
Excluding hydro, EDC’s recurring profit in the first half stood at $44 million, down by 42 percent compared to last year’s $77 million following lower contributions from its geothermal portfolio.
The sales and operating income of geothermal power plants declined due to decreased power prices and volumes sold, combined with an increase in operating expenses.
The natural gas business, however, partially offset the slowdown in the geothermal unit after reporting a 26-percent jump in recurring income to $115 million from $91 million a year earlier.
“All of our natural gas plants were operating and providing vital power during the summer months when both yellow and red alerts were occurring,” Puno said.
The 420-megawatt San Gabriel plant, the 1,000-MW Santa Rita plant and the 500-MW San Lorenzo plant were said to have delivered higher gains, thanks to optimized costs and increased spot market sales.
The hydro platform, meanwhile, contributed a recurring income of $5 million, boosted by the takeover of the 165-MW Casecnan power plant in late February.
A subsidiary of First Philippine Holdings Corp., First Gen currently has 3,668 MW of installed capacity in its portfolio, equivalent to about 20 percent of the country’s gross generation.
The company has embarked on an ambitious target of achieving an installed capacity of 13,000 MW in the next six years.
It is investing around P29.3 billion to develop and commercialize four geothermal and three battery energy storage system projects by the end of this year.
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