The Lopez-controlled First Gen Corp. posted a 50 percent increase in its net income to $100 million in the first three quarters of 2007, the company said in a disclosure to the Philippine Stock Exchange yesterday.
First Gen said the significant profit improvement could be attributed to the income contribution of the 112-megawatt (MW) Pantabangan/Masiway hydroelectric power plants.
Other factors that contributed to the improved income performance were the savings from lower interest expenses due to debt prepayment and non-recurring income.
First Gen vice chairman Peter D. Garrucho said he expects 2007 to be a record year for the company.
“Our financial and operating results for year-to-date 2007 have been exceptional due mostly to the Pantabangan/Masiway plants and the high dispatch of the gas plants. Pantabangan/Masiway earned for the company $23.6 million during this period,” he said.
He added the higher dispatch level of two of the company’s power facilities also boosted income during the period under review.
“The 1,000-MW Santa Rita garnered dispatch of 79 percent while the 500-MW San Lorenzo enjoyed a record-high dispatch of 90 percent. Both plants had the highest dispatch rates in the Luzon grid,” he noted.
The First Gen official also pointed out the favorable performance of their oil-fired facility.
“Our bunker-fired plant, the 225-MW Bauang power plant, is also consistent in terms of its operating and financial results, which supplement First Gen’s net income from its subsidiaries,” he said.
Garrucho said though the results have been strong, the positive movement in earnings was also helped by non-recurring gains of about $7 million.
He said the company’s consolidated revenues from the sale of electricity rose to $800 million, higher by eight percent.
“The increase was primarily due to the continued successful operations of Pantabangan/Masiway, higher net dependable capacity of each of the gas plants due to the completion of some power augmentation projects, and higher dispatch in comparison to last year’s,” he said.
Garrucho also noted the net decline in First Gen’s consolidated liabilities by $90 million, despite new borrowings of $77 million in November 2006 from the Power Sector Assets and Liabilities Management Corp. (PSALM) for the acquisition of Pantabangan/Masiway.
The company earlier said it would likely invest up to $1 billion in the next four years to expand its operations and capacities.
According to Garrucho, if the expansion plans materialize, they expect the improvement in income to be sustained over the coming years.