First Gen’s earnings flatten in 2021

The company earned US$252m in recurring net income during the year.

The Lopez Group’s power generation company, Firs Gen Corp., reported its earnings flattened in 2021, driven by higher electricity sales was offset by lower earnings from Energy Development Corp.

The company posted a P12.4b recurring net income attributable to equity holders, which is approximately US$252m, from the operation of its 3,495 megawatts of clean, low-carbon, and renewable portfolio.

This was driven by higher electricity sales from its natural gas and hydroelectric platforms and higher Wholesale Electricity Spot Market prices. This was offset by lower earnings from Enery Development Corporation due to generation and steam issues.

“First Gen generated higher revenues in 2021 as we saw power demand recover to pre-pandemic levels. Unfortunately, revenue growth was also an effect of higher fuel prices experienced all over the world and the supply restrictions in the grid that reflected in high spot market prices,” First Gen President and COO Francis Giles B. Puno said.

“Our gas-fired plants necessarily ran on liquid fuel to ensure adequate supply for the grid. We are working to address gas supply uncertainty and are confident this will be addressed once our liquefied natural gas import terminal operates this year.”

According to First Gen, its natural gas platform saw an 8% increase to US$198m in recurring earnings for 2021.

In particular, the company’s 97MW Avion power plant benefitted rom high electricity sales despite plant damages. Its older natural gas-fired power plant, 1,000MW Santa Rita, and the 500MW San Lorenzo, also benefitted from the lower tax rates under the Philippines’ new corporate tax law.

These were, however, partially offset by lower operating income from the 420MW San Gabriel power plant due to outages and higher replacement power.

This led to an attributable net income to parent of the gas platform to increase to US$199m for 2021 from US$187m in 2020.