First Gen nets P10B on higher electricity sales

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LOPEZ-LED First Gen Corp.’s recurring net income attributable to equity holders rose by 11% as of September this year to P10.3 billion largely from the operations of its renewable energy portfolio.

In a regulatory filing on Monday, it said the rise was due to higher electricity sales, led by its 97-megawatt (MW) Avion natural gas-fired power plant.

“Our clean and renewable energy platforms generated higher revenues for the nine months of 2021 as power demand recovered to pre-pandemic levels,” said First Gen President and Chief Operating Officer Francis Giles B. Puno in a statement.

Lower interest expenses and taxes due to the Corporate Recovery and Tax Incentives for Enterprises law also contributed to the increase, the company added.

First Gen’s consolidated revenues from electricity sales were higher by 18% or P9.6 billion to P78.1 billion from P68.6 billion in the same nine months last year.

The company’s natural gas-fired plants accounted for 59% of revenues as they reported a 20% increase in recurring earnings to P7.9 billion in the nine-month period.

The holdings company’s unit Energy Development Corp. accounted for 35% of revenues even as its earnings from its geothermal, wind, and solar platform was 6% lower than in the same three quarters last year to P3 billion from P3.3 billion.

Separately, Lopez-led First Philippine Holdings Corp. (FPH) reported a 16% increase in its attributable third-quarter net income to P2.7 billion from P2.3 billion in the same quarter the previous year.

In its regulatory filing on Monday, FPH said its quarterly results brought its nine-month attributable net income to P8.5 billion from P7.3 billion previously.

It described the results as “mainly reflecting the notable growth in earnings of the operating subsidiaries as the Group benefited from the reopening of the economy and the easing of community quarantine restrictions compared to the same period last year.”

The company’s gross revenues for the three-quarter period rose by 16% to P92.29 billion from P79.02 billion a year ago.

Meanwhile, Lopez Holdings Corp., the parent firm of First Gen and FPH, posted an attributable net income of P1.2 billion in the third quarter, a turnaround from its net loss of P766 million in the same quarter last year.

This brought the holdings firm’s attributable net income for the three quarters of 2021 to P2.25 billion, a recovery from its P491-million loss a year ago.

Lopez Holdings’ revenues increased by 16% to P92.29 billion from P79.02 billion in the same period last year.

The firm’s financial performance for the period “was within expectations, fully recognizing the economic impact of quarantine restrictions and the non-renewal of the ABS-CBN franchise,” it said.

Lopez Holdings is the holding company for the Lopez family’s investments in broadcasting and cable, telecommunications, power generation and distribution, and banking.

On Monday, shares in First Gen went down by 0.33% or 10 centavos to close at P30.40 each. FPH shares slipped by 0.07% to end at P74.65 apiece. Lopez Holdings shares closed at P3.10 each. — Bianca Angelica D. Anago