FGen recurring earnings down 24% in Q1

MANILA, Philippines — Lopez-led First Gen Corp. reported a 24 percent drop in recurring net earnings to P3 billion in the first quarter due to lower contributions from its geothermal and gas platforms.

“First Gen generated more power in the first quarter of 2022.  However, both Avion and Energy Development Corp. (EDC) were affected by unplanned outages. In EDC’s case, it led to high replacement power costs as Typhoon Odette debilitated transmission capacity despite the plants’ ability to produce power. EDC was able to wheel out its power by mid-January. As for the rest of the natural gas fleet, it was plagued by gas interruptions at the Malampaya field,” First Gen president and COO Francis Giles Puno said.

For the natural gas platform, First Gen saw a 27 percent slide in recurring earnings from P2.5 billion ($52 million) to P2 billion ($38 million).

In December last year, the company discovered damage in the 97-megawatt (MW) Unit 1 Avion power plant, which resumed operations last February after purchasing a new turbine.

Moreover, the 420-MW San Gabriel power plant recognized lower capacity fees due to its de-ration from gas supply restrictions from the Malampaya gas field.

“This resulted in the importation of expensive liquid fuel. To address this recurring issue, the importation of liquefied natural gas can happen by fourth quarter when the LNG terminal operates,” Puno said.