First Gen Corp., the renewable energy arm of the Lopez Group, saw a 9 percent decline in net income to USD81 million on lower electricity sales, higher operating expenses, and the expiry of a power supply contract.
First Gen said its units Energy Development Corp. saw its geothermal portfolio produce lower recurring net income due to the combined impact of lower power prices and an increase in operating expenses. Meantime, First Natgas Power Corp., owner of the 420-megaWatt San Gabriel natural gas-fired power plant, saw a drop in revenue after its power supply deal with Manila Electric Co. expired in February, the company added.
The listed power firm saw revenue decline 9 percent to USD596 million as a result of lower electricity volume sold during the quarter across all platforms, save for the hydro platform. The inclusion of the 165 MW Casecnan Power Plant to the First Gen portfolio helped hydro perform better.
The natural gas portfolio accounted for 65 percent of First Gen’s total consolidated revenue, while 31 percent came from EDC’s geothermal, wind, and solar plants. The balance comes from hydro plants and First Gen Energy Solutions, its retail electricity supplier.
