Daily TribuneBased on FGEN’s report, Energy Development Corp.’s (EDC) geothermal portfolio contributed to lower recurring net income as revenues slipped due to lower power prices and volumes sold on top of an increase in operating expenses.
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First Gen Corp. (FGEN), a renewable energy company controlled by the Lopez Group, sustained a 10 percent decline in earnings during the first half of the year amid lower contribution of its geothermal business.
The company informed the stock exchange on Monday that attributable recurring net income for the first semester reached only P8.4 billion, 10 percent lower than the reported P9.2 billion in the same period last year.
FGEN likewise delivered P71.1 billion in revenues from January to June, 0.7 percent lower than the P72 billion last year due to lower volumes of electricity sold.
Based on FGEN’s report, Energy Development Corp.’s (EDC) geothermal portfolio contributed to lower recurring net income as revenues slipped due to lower power prices and volumes sold on top of an increase in operating expenses.
EDC’s recurring earnings of P2.5 billion for the first six months was 42 percent lower than its recurring income of P4.2 billion last year.
However, higher profits from the natural gas business were able to partially offset the decline from its geothermal unit.
“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 sales.
It cannot be denied that our new LNG terminal was able to offer gas supply to our power plants at a time when the grid needed it the most,” First Gen President and COO Francis Giles B. Puno said.
The natural gas portfolio accounted for 67 percent of First Gen’s total consolidated revenues, while 30 percent came from EDC’s geothermal, wind, and solar plants. The balance comes from the company’s hydro business unit.
