FGEN INCOME DOWN BY 7%

First Gen Corporation (First Gen), the Lopez Group‘s power generation company has earned Php13.7 billion (US$276 million), a 7% decline in net income attributable to equity holders from the operations of its 3,492 MW clean, low-carbon, and renewable portfolio.

The Company said it managed the challenges from the pandemic with a highly-contracted portfolio.

The natural gas platform suffered from a 7% decrease in earnings for the year to Php9.3 billion (US$187 million) from Php10.4 billion (US$201 million) in 2019. While the 420 MW San Gabriel power plant had an unplanned outage in September 2020 and incurred higher income taxes as its Income Tax Holiday expired at the end of March 2020.

The merchant 100 MW Avion natural gas-fired power plant was affected by low spot market prices, although slightly offset by fresh earnings from the start of its ancillary service contract in June 2020.

From a recurring attributable net income to a parent of Php10.1 billion (US$194 million) in 2019, the gas platform generated Php9.2 billion (US$184 million) for 2020.

The Energy Development Corporation's (EDC) earnings from its geothermal, wind, and solar platforms amounted to Php5.3 billion (US$106 million) in 2020, 5% higher in comparison to the Php5.2 billion (US$101 million) it earned in 2019.

EDC was able to save on operating expenses in contrast to several one-time expenses that occurred in 2019 due to the company’s reorganization. Moreover, the Energy Regulatory Commission approved the Feed-in Tariff rate adjustments from 2016 to 2020 for the Burgos Wind and Solar Projects. The renewable company, however, had a lower recurring attributable net income to parent of Php4.5 billion (US$90 million) for the year, while it generated Php5.1 billion (US$98 million) in 2019, still due to lower power demand.

The hydro platform’s attributable earnings contribution fell by 90%, or Php0.6 billion (US$12 million) to Php0.1 billion (US$1 million) for 2020 from Php0.7 billion (US$14 million) in 2019 mainly due to lower prices at the Wholesale Electricity Spot Market (WESM), though mildly offset by higher ancillary service sales. The hydro platform’s recurring earnings in 2020 was the same at Php0.1 billion (US$1 million).

First Gen’s recurring net income attributable to equity holders in 2020 was Php12.6 billion (US$252 million). This was Php2.2 billion (US$32 million) or 11% less than the 2019 earnings of Php14.8 billion (US$284 million) due mainly to lower electricity sales across all platforms.

First Gen's consolidated revenues from the sale of electricity in 2020 declined by Php20.6 billion (US$321 million) or 15% to Php91.2 billion (US$1,830 million), compared to Php111.8 billion (US$2,151 million) in 2019. All of the Company’s platforms were affected by the decline in demand brought by the pandemic that resulted in lower power prices.

The natural gas portfolio accounted for 59% of First Gen’s total consolidated revenues. EDC’s geothermal, wind, and solar revenues accounted for 38% of First Gen’s total consolidated revenues in 2020. The hydro plants accounted for 2% of First Gen’s total consolidated revenues.

WEEKLY FEATURE : BONNER DYTOC SHOWS THE WAY IN STOCK PLAY