First Gen net profit jumps 14% to $104.7M in 2007

First Gen Corp., the power generation arm of the Lopez Group, posted a net income of $104.7 million last year, up 14 percent from a year earlier, the company said in a statement.

The company said the improvement in earnings was brought about by the increase in the net income of its natural gas-fired power plants — the 1,000-megawatt Santa Rita and 500-mw San Lorenzo facilities in Batangas.

According to First Gen, the company also realized the full effect of profits from the 112-mw Pantabangan/Masiway hydroelectric complex.

The recent earnings from its acquisition late last year of a controlling stake in PNOC-Energy Development Corp. also contributed to the increase in profits, the company added.

Including minority interests, First Gen said its net income would reach $181.8 million.

First Gen president and CEO Federico Lopez said they are pleased with the performance of the company last year.

“We are quite pleased with the 2007 financial and operating results. All of the power plants in the portfolio performed well and delivered numbers beyond our expectations,” he said.

“Pantabangan/Masiway’s operations earned the company $29 million The gas plants Santa Rita and San Lorenzo enjoyed the highest dispatch rates among all power plants in the Luzon grid and delivered more electricity this year due to its upgrades. This resulted in a higher combined net income of $169.1 million. Bauang’s dispatch likewise improved in 2007,” he added.

First Gen’s consolidated revenues rose to $1.1 billion, up five percent from the 2006 level.

Lopez said the increase was primarily due to Pantabangan/Masiway’s full year operations, EDC’s sale of steam and electricity, and sale of additional electricity from Santa Rita and San Lorenzo because of the plants’ higher net dependable capacities.

He said the dispatch level of the two natural gas-fired power plants remained high, averaging 81 percent.

In November 2007, First Gen acquired a controlling stake in the publicly-listed EDC. With the EDC plants and steamfields now part of First Gen portfolio, the firm has consolidated the financials of EDC.

According to Lopez, EDC contributed about $16.7 million in net income to First Gen.

First Gen is the largest vertically-integrated power generation company in the Philippines with an installed capacity of 2,582 mw. It accounts for approximately 16 percent of total installed capacity in the country today.

First Gen was incorporated in December 1998 to become the primary holding company for the power generation and energy-related businesses of the Lopez Group.

First Philippine Holdings Corp. (FPHC), parent and controlling shareholder of First Gen, became involved in power generation industry in 1993 when its first major investment in power generation, Bauang Private Power Corp. (BPPC), was incorporated.

Aside from Santa Rita, San Lorenzo, Pantabangan/Masiway and PNOC-EDC, First Gen also owns the 1.6 mw Agusan mini-hydro power plant.