First Gen Reports Higher 2015 Recurring Attributable Net Income at $163M

Pasig—(PHStocks)—Clean and renewable energy company First Gen Corp. (PSE: FGEN) reported net income attributable to equity holders of the parent of $167 million for 2015. This was a 13%, or a $26 million decrease from the $193 million it earned in 2014. First Gen’s subsidiary Energy Development Corp. (PSE: EDC) contributed lower earnings as it reported higher extraordinary gains in 2014.

On a recurring basis, First Gen’s attributable net income registered a 7% increase to $163 million from $153 million in 2014 as the natural gas-fired plants benefited from higher dispatch and lower expenses, as well as lower interest expenses at the parent company.

First Gen’s consolidated revenues from the sale of electricity slightly decreased to $1.84 billion in 2015 compared to $1.9 billion. The Santa Rita and San Lorenzo natural gas-fired power plants accounted for $1.08 billion, or 59% of First Gen’s total consolidated revenues. Their revenues were 11% lower in comparison to their contribution of $1.2 billion in 2014 due to lower fuel charges, though partially offset by the higher combined dispatch of the gas plants in 2015 at 81% versus 2014’s 70%.

In total, the recurring earnings contribution of the natural gas-fired plants increased by $11 million to $118 million in 2015 as the higher dispatch was supplemented by lower interest expenses.

EDC‘s geothermal, wind and solar revenues accounted for $709 million, or 39%, while First Gen Hydro Power Corp.’s (FG Hydro) revenues were $42 million or 2% of total consolidated revenues from sale of electricity. EDC’s revenues rose by $57 million, or 9% from $652 million in 2014. The growth was mainly due to full-year contributions from the new wind and rehabilitated geothermal projects. On a recurring basis, EDC’s operations suffered from lower attributable earnings of $90 million from $93 million due to higher operating expenses.

FG Hydro’s revenues were greater by $5 million at $42 million in 2015 as a result of higher dispatch. However, the recurring earnings contribution of FG Hydro was lower at $8 million from $12 million due to the expiration of its Income Tax Holiday in April 2014.

“2015 turned out to be a solid year in terms of recurring income. However, our financial results were still below our own expectations driven by the delay in the 97MW Avion and higher expenses incurred at EDC. In 2016, we look forward to completing Avion and the 414 MW San Gabriel power plants at an opportune time when tightness of supply is forecasted. We will provide clean and lower carbon-sourced energy to the market at competitive rates,” First Gen President Francis Giles B. Puno said.