First Gen Consolidated Revenues Up 18%

First Gen Corporation's consolidated revenues from the sale of electricity were higher in the first quarter of 2022, at P29.1 billion ($570 million), an 18 percent increase from P23.2 billion ($483 million) in 2021.

Photo Insert: Natural gas revenues made about 62 percent of First Gen's total consolidated revenues.

Higher electricity sales were supplemented by higher fuel prices and Wholesale Electricity Spot Market pricing, resulting in higher income.

Natural gas revenues made about 62 percent of First Gen's total consolidated revenues. The geothermal, wind, and solar income of Energy Development Corporation (EDC) amounted for 33%, while hydro plants contributed for 4%.

“First Gen generated more power in 1Q22 versus 1Q21. We reached another milestone this first quarter as EDC’s 3.6- megawatt (MW) Mindanao 3 plant started operating last March,” said Giles Puno, First Gen president and COO.

In the first quarter of 2022, the company recorded a decreased recurring net income of P3.0 billion ($59 million), compared to P3.8 billion ($78 million) the previous year. The operating income from the natural gas and geothermal platforms both decreased.

Recurring earnings for the natural gas platform fell by 27% in the first three months of 2022, to P2.0 billion ($38 million) from P2.5 billion ($52 million) in 2021. The gas platform's attributable net income to parent fell to P2.2 billion ($43 million) in 2022 from P2.8 billion ($57 million) in 2021 due to nonrecurring charges.

Outages were also experienced by EDC's geothermal, wind, and solar platforms, primarily due to typhoon Odette, which caused transmission restrictions, as well as reduced wind generation from Burgos in 1Q22 compared to the same period previous year. Furthermore, the Burgos project's income tax break terminated in November 2021, resulting in fewer earnings.

Puno highlighted that “both Avion and EDC were affected by unplanned outages. In EDC’s case, it led to high replacement power costs as typhoon Odette debilitated transmission capacity despite the plants’ ability to produce power. EDC was able to wheel out its power by mid-January. As for the rest of the natural gas fleet, it was plagued by gas interruptions at the Malampaya field. This resulted in the importation of expensive liquid fuel. To address this recurring issue, the importation of LNG [liquefied natural gas] can happen by 4Q22 when the LNG terminal operates.”

EDC reported recurring and attributable earnings of P0.9 billion ($17 million) in 1Q22, down 38% from P1.3 billion ($27 million) last year.

For the first 90 days of 2022, the hydro platform contributed P0.5 billion ($10 million) to both recurring and nonrecurring earnings, up from P0.2 billion ($5 million) last year. From their contract with Meralco and merchant sales, the 132.8-MW Pantabangan-Masiway power plants achieved increased operational income.

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