Lopez group’s renewable energy unit First Gen Corp. reported a 10 percent slide in net income for the first semester at P8.4 billion from P9.2 billion a year ago due to weak geothermal sales and higher expenses.
Energy Development Corp.’s (EDC) geothermal portfolio continued to produce lower recurring net income mainly from the decline of its revenues due to lower power prices and volumes sold, combined with an increase in operating expenses.
Higher profits from the natural gas business partially offset the decline from First Gen’s geothermal business.
The company generated P72.1 billion in revenues in the first half, a 0.7 percent decrease from P71.1 billion in 2023.
The lower revenues are a result of lower volumes of electricity sold during the first six months across all platforms except for the hydro platform, due to the additional sales volume from the 165 megawatts (MW) Casecnan Hydroelectric Power Plant (Casecnan) following its turnover in February 2024.
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. The natural gas business unit reported a 26 percent increase in recurring earnings for the first half to P6.5 billion from P5 billion a year ago.
Natgas delivers higher sales
The 420 MW San Gabriel Power Plant (San Gabriel), 1,000 MW Santa Rita Power Plant (Santa Rita) and 500 MW San Lorenzo Power Plant (San Lorenzo) all delivered higher operating income due to savings in operating expenses, and high spot market prices in the case of San Gabriel.
In addition, FGEN LNG Corporation generated commissioning revenues from its precommercial operations and terminal fees, though still uncollected.
Only the 97MW Avion Power Plant had lower net income due to lower kilowatt hour sales and higher operating expenses.
EDC’s recurring earnings at P2.5 billion for the first six months of 2024 was 42 percent lower than its recurring income of P4.2 billion in 2023.
The geothermal power plants under EDC generated lower sales and operating income. The unit also incurred higher interest expenses from new debt.