First Gen Corp., the listed clean and renewable energy company of the Lopez Group, said Thursday its net income last year rose 4 percent to P15.4 billion on the back of higher electricity prices and better interest income on internally-generated cash.
First Gen said the geothermal portfolio of its clean energy unit, Energy Development Corp., delivered record earnings due to an improvement in electricity prices. EDC also had fewer purchases of replacement power due to lower contracted volumes from the expiry of the Unified Leyte Power Purchase Agreement in July 2022.
EDC’s 150-megaWatt Burgos Wind farm also continued to benefit from an improved wind regime in 2023.
Meantime, the hydro platform’s contribution to First Gen’s recurring earnings dropped 23 percent to P212 million due to lower electricity production at the Pantabangan-Masiway hydroelectric plant due to the transfer of its power supply contract to EDC in August 2022, as well as low water reservoir levels. The decrease in electricity sold was mostly offset by an increase in Wholesale Electricity Spot Market volumes sold and lower purchases of replacement power. Savings in administrative expenses and higher interest income also tempered the impact of lower electricity output.
“2023 was a positive year for First Gen as EDC achieved its highest earnings to date, while FGEN LNG started to commission. The Company was likewise declared the highest bidder for the 165 MW Casecnan Hydroelectric Power Plant,” said Giles Puno, president and chief operating officer of First Gen. “This year, these developments should translate to additions to First Gen’s earnings as the LNG Terminal reaches commercial operations and the effectivity of the Terminal Lease Agreement with Gas Aggregator Philippines, Inc. happens. Casecnan will likewise be a positive addition to the bottom line from day one of its turnover,” Puno added.
First Gen posted revenue of P137.7 billion in 2023, down 7 percent due mostly to lower fuel revenue which meant lower electricity prices for consumers. There was a drop in natural gas and liquid fuel prices globally.
The natural gas platform reported a 5 percent decrease in recurring earnings to P10.25 billion as a result of high interest expenses of the Santa Rita and San Lorenzo natural gas-fired power plants.
FGEN LNG Corp., the special purpose vehicle of First Gen operating an interim offshore LNG terminal, started to generate commissioning revenue from its pre-commercial operations. It also booked a receipt of USD25 million in non–recurring other income from construction delay claims. Still, the SPV booked a net loss of USD20 million.
