First Gen posts 64% jump in 2014 net income 

First Gen Corp. grew its net income by 64 percent to $193.2 million in 2014 from $118.1 million a year earlier due to higher earnings contribution from its gas and geothermal power plants, the company disclosed to the Philippine Stock Exchange on Friday. 

The Santa Rita and San Lorenzo natural gas power plants – collectively called First Gen Gas Plants – contributed $121.5 million to its attributable net income, higher than the $81.9 million year-on-year.

 

Under Energy Development Corp., the geothermal power plants contributed $136.1 million in attributable earnings from $76.6 million mainly from the Bacon-Manito (BacMan) power plants in Bicol and the Nasulo Geothermal Project in Valencia, Negros Oriental.

 

"First Gen’s thrust to grow its clean and renewable platform has gained significant momentum in 2014," president Francis Giles B. Puno said in a statement.

 

"The BacMan and Nasulo geothermal projects of EDC were positive turnaround stories for 2014 and, together with the new 150 MW Burgos wind project, will increase revenues moving forward," he added.

 

The Burgos Wind Project started operating as of end-November 2014 and was cleared to receive incentives under the feed-in tariff (FiT) system last month.

 

However, such favorable results were tempered by lower earnings from First Gen Hydro Power Corp. on low water levels and higher administrative expenses that include taxes, expenses related to project development, and interest expense for fresh borrowings of both the parent and EDC.

 

This year, Puno said the company will fast-track the 97 MW Avion natural gas-fired project to address the power supply shortage.

 

He said the company expects to complete the 414 MW San Gabriel natural gas plant in the summer of 2016.

 

"Despite the reduced earnings from the Pantabangan hydro plant, we hope to get moving on our run-of-river projects in 2015," Puno added. – Danessa O. Rivera/VS, GMA News