Mar 14, 2019
FIRST GEN Corp. posted a 65% increase in its 2018 net income attributable to the company’s equity holders to $221 million (P11.6 billion), with the added boost from its new gas-fired power plant plus other factors such as lower interest expense, the Lopez-led company told the stock exchange on Wednesday.
The company also recorded a 51% rise in full-year recurring earnings to $243 million (P12.8 billion), largely because of the strong contribution of its natural gas business.
“2018 was an exceptional year for First Gen as we concretized value from the sizable investment made for the modern 420 MW (megawatt) San Gabriel natural gas-fired power plant. This was made in anticipation of the market’s increased electricity demand and the need for new cost-competitive power supply to the grid,” First Gen President and Chief Operating Officer Francis Giles B. Puno said in a statement.
Last year, the gas segment contributed recurring earnings of $186 million (P9.7 billion), up 55% from $120 million (P6 billion) a year earlier. The company reports its financial results in US dollars, which is its functional currency.
“The 1,500 MW Santa Rita and San Lorenzo natural gas-fired plants continued their reliable performance incorporating the technical upgrades we have invested in over the years that effectively reduced the power rates to consumers,” Mr. Puno said.
The San Gabriel plant benefited from significantly higher dispatch and revenues as it sold power at attractive prices in the spot market in the first half of 2018. It later sold its full production to Manila Electric Co. under a power supply agreement that started in June.
First Gen said its numbers were also boosted by lower interest expenses and higher interest income as a result of the group’s deleveraging and refinancing initiatives. The company noted that savings in interest expense and the receipt of insurance proceeds offset unrealized foreign exchange losses and higher deferred taxes.
Consolidated revenues from the sale of electricity increased 17.6% to $2 billion in 2018, from $1.7 billion in 2017. The natural gas portfolio accounted for $1.24 billion, or 63% of the total, as its revenues were 20% higher mainly due strong performance the gas-fired plants.
Mr. Puno said the company is now focused on “firming up our future direction” with the liquefied natural gas (LNG) terminal investment with Tokyo Gas Co., Ltd. The two companies have a joint development agreement to develop the facility through FGEN LNG Corp.
First Gen unit Energy Development Corp. (EDC) accounted for $652 million or 33% of total consolidated revenues, contributing its revenues from geothermal, wind and solar businesses, which increased by about 9% from $595 million.
“Our geothermal platform, through EDC, likewise made a remarkable recovery in the second half of 2018 with the faster-than-expected recovery of its Unified Leyte plants from the outage caused by natural calamities in 2017, coupled with higher sales volume and more attractive selling prices. We expect EDC to continue to outperform this year,” Mr. Puno said.
On Wednesday, shares in First Gen were trading higher by 3.14% at P21.35 each.
Originally posted by:
Victor V. Saulon, Business World
Mar 13, 2019
MANILA — First Gen Corp, the Lopez Group’s renewable energy arm, said Wednesday its net income surged in 2018 on the back of strong earnings of its natural gas business.
First Gen said its attributable net income rose 65 percent to $221 million (P11.6 billion) while recurring net income attributable to shareholders rose 51 percent to $243 million (P12.8 billion).
The company’s natural gas business delivered earnings of $186 million (P9.7 billion), from $120 million (P6 billion) in 2017, First Gen told the stock exchange.
Shares of First Gen were up 2.9 percent in early trading Wednesday after it disclosed its 2018 results. The main index was little changed, down 0.008 percent.
First Gen said its new 420 megawatt San Gabriel plant sold power at attractive prices in the first half and sold its full production to Meralco from June.
Lower interest expenses and higher interest income also contributed to the company’s earnings last year, First Gen said.
Originally published by:
Mar 12, 2019
MANILA — First Gen Corp said it was waiting for formal notice on the Department of Energy’s decision allowing it to proceed with a natural gas project with Tokyo Gas Co.
First Gen said its unit, FGEN LNG Corp, applied for a notice to proceed with the construction of an LNG Terminal in Batangas City, according to a stock exchange filing dated March 8.
Tokyo Gas in a separate statement on Tuesday that it obtained, together with First Gen, the Philippine government’s approval for the project.
Japan’s largest gas utility plans to own a 20 percent stake of the project, aiming to commence operation in 2023, Tokyo Gas spokesman Noriyoshi Ibara in Tokyo told NNA on Monday.
Tokyo Gas and First Gen submitted the LNG terminal plan to the Department of Energy last December. Although the consortium gained the permit, “We have yet to make a final investment decision,” the spokesman said without elaborating.
The new terminal will have an annual capacity of 5.26 million tons, according to Rino Abad, director of the department’s oil industry management bureau. Local media said investment costs were estimated at $10 billion.
Manila has so far approved two other LNG hubs development projects, but the Tokyo Gas-First Gen venture is the largest in capacity size.
First Gen operates four gas-fired power plants in the province, south of Manila, by sourcing natural gas from the Malampaya gas field off the coast of Palawan Island.
Also the nation’s largest natural gas buyer, First Gen has decided to build the gas import terminal as local supplies are feared to become depleted as early as 2024.
First Gen aims to firm up contractors, costs and other arrangements “within the year” to proceed the plan by next year, company president Francis Giles Puno was quoted by BusinessMirror as saying.
Originally published by: