First Gen reports US$50m profit due to gas and geothermal projects

First Gen reports US$50m profit due to gas and geothermal projects Bacon-Manito geothermal field, Philippines (source: EDC)
Alexander Richter 13 Aug 2010

First Gen reports US$50million profit for 1H 2010, with its subsidiary EDC contributing earnings of US$37million up more than 50%.

In a statement on its financial results for the first half of 2010, Philippine based “First Gen Corp. profits jumped by 158% in the first half due to higher electricity sales and stronger performance of affiliates.

First Gen said it earned $50 million in the first half of the year, from $19.4 million in the same period last year. Total revenues grew by 24% to $655.4 million from $526.3 million.

Electricity sales from the 1,000-megawatt (MW) Sta. Rita and 500-MW San Lorenzo gas-fired power plant increased by 16% to $599.1 million in the first half from the previous period’s $517 million.

“With the scheduled maintenance outage of the Malampaya platform in February and March 2010, the Sta. Rita and San Lorenzo plants were operated reliably on liquid fuel and helped stabilize the power supply situation in the Luzon grid at the peak of the summer months when the El Niño phenomenon was being felt. Operations of hydroelectric plants at that time were mostly curtailed due to low water levels,” the company said in its statement. Sta. Rita and San Lorenzo profited $63.8 million for the period.

First Gen’s earnings were also supplemented by the strong performance of affiliates Energy Development Corp. (EDC) and First Gen Hydro Power Corp. EDC contributed earnings of $36.5 million, up from $23.6 million the previous year. First Gen Hydro Power contributed $17.9 million, also up from $14.9 million.

“We are very pleased with the operating and financial performance of our gas, hydro and geothermal power portfolio. Our financial normalization program continues to be a priority for First Gen. And while our First Gas plants continue to contribute solid results, the positive effects of the management focus we are putting to improve the value of EDC is clearly evident in its stronger results having successfully acquired all the generating plants that are located in its steam fields,” First Gen President Francis Giles B. Puno said.”

Source: Business World Online