LOPEZ-LED First Gen Corp. reported a 2.5% decrease in its attributable net income to $75.26 million for the second quarter (Q2), driven by higher expenses and lower contributions from some of its business units.
First Gen’s gross revenues increased by 7.4% to $682.05 million from last year’s $634.78 million, the energy company said in a regulatory filing on Monday.
Gross expenses, on the other hand, went up by 14.8% to $552.09 million from $481.12 million in the previous year.
For the six months ending in June, First Gen’s attributable net income fell by 7.4% to $154.08 million compared to $166.44 million the previous year. Gross revenues declined by 0.8% to $1.28 billion from $1.29 billion a year ago as a result of lower volumes of electricity sold during the first half “across all platforms except for the hydro platform.”
First Gen reported additional sales volumes from the 165-megawatt (MW) Casecnan Hydroelectric Power Plant following its turnover in February.
Natural gas accounted for the majority of First Gen’s revenue at 66.8% or $853.72 million, followed by geothermal, wind, and solar at a combined 30.2% or $386.44 million, while the remainder is for its hydro at 0.7% or $8.77 million.
For the first half, the company’s expenses increased by 4% to $997.93 million versus the $959.18 million previously. First Gen’s natural gas business unit posted a 26% increase in its earnings for the first half to $115 million.
The company said that the 420-MW San Gabriel, 1,000-MW Sta. Rita, and 500-MW San Lorenzo power plants delivered higher operating income “due to savings in operating expenses, and high spot market prices in the case of San Gabriel.”
Avion Power Plant recorded a decrease in net income due to lower kilowatt-hour sales and higher operating expenses.
Earnings from First Gen’s renewable energy unit, Energy Development Corp. (EDC), excluding hydro’s, declined by 42% to $44 million brought about by lower revenues.
“The geothermal power plants under EDC generated lower sales and operating income due to a reduction in electricity prices and electricity sold, and higher operating expenses from steam field maintenance and work-over activities,” the company said in a statement.
The unit also incurred higher interest expenses from new debt, it added.
Contributions from First Gen’s hydro platforms were at $5 million, with Casecnan Hydroelectric Power Plant accounting for $1-million earnings for its four months of operations in the first half.
First Gen has a total of 3,668 MW of installed capacity, accounting for 20% of the country’s gross generation.
At the local bourse on Monday, shares in the company rose by 2.53% to close at P17 each. — Sheldeen Joy Talavera
