Lower taxes, expenses push up FGen’s Q1 earnings | Bilyonaryo Business News
Power

Lower taxes, expenses push up FGen’s Q1 earnings

First Gen Corp. reported a 28.9 percent jump in net income to %84 million, largely due to higher contributions from its business units as well as new contracts.

Consolidated revenues from the sale of electricity was almost flat at P23.2 billion.

The natural gas portfolio accounted for 55% of First Gen’s total consolidated revenues. EDC’s geothermal, wind, and solar revenues accounted for 40% of First Gen’s total revenues.

Subsidiary First Gas Power Corp., which operates the 1,000 megawatt Santa Rita natural gas-fired power plant, saw its net income contribution increase by 50.7 percent to $32.8 million due to lower provision for income tax under the new Create Law, supplemented by a higher benefit from deferred income taxes.

Energy Development Corp. chipped in $27.4 million, up $1.5 million or 5.7 percent owing to higher contributions from Burgos Wind and Solar on account of the FiT rate escalation that became effective in November 2020 and higher contributions from Bacman and Tongonan plants.

This was supplemented by EDC’s lower interest expense for the period due to its full repayment of theremaining balance of its $300 million Bond in January 2021, and partial repayment of P 3.0 billion of its P 7.0 billion fixed rate bonds in May 2020.

The hydro platform’s recurring earnings contribution stayed the same at P200 million. Though the 132.8 MW Pantabangan-Masiway power plants generated higher revenues, this was offset by higher replacement power costs.

“The year 2021 is looking to be a better year, although we recognize that the recent surge and newly-imposed lockdowns has made recovery slower. Nonetheless, we want to move forward and work on projects that will support the economy and increase employment. The construction of the country’s first LNG terminal is underway and, at First Gen, we are studying our roster of growth projects so that they can be ready by the time our country has recovered,” First Gen resident and COO Francis Giles B. Puno said.

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