The decline was largely driven by Energy Development Corp.’s (EDC) lower electricity sales and increased steamfield maintenance expenses, along with interest from new debt used for ongoing drilling operations.
Key financial data
The company also incurred higher interest expenses after securing a P20 billion loan for its acquisition of the 165 MW Casecnan Hydroelectric Power Plant, which contributed 16 million to earnings after its February turnover.
• First Gen’s revenues fell 3 percent to 2,408 million (P137.3 billion), with natural gas accounting for 65 percent of the total.
• The gas portfolio’s recurring earnings rose 12 percent to 187 million (P10.7 billion), supported by operating cost savings, debt reduction, and higher LNG terminal fees.
• However, the 420 MW San Gabriel and 97 MW Avion plants saw lower earnings due to outages, contract expiries, and turbine repairs.
Management’s view, outlook
“We expect LNG supply deliveries in April and May to address the increased electricity demand during the hot summer months,” First Gen president and chief operations officer Giles Puno said.
“Our gas-fired plants should benefit from the newly-enacted Natural Gas Law, but we are reviewing our options for the 1,000 MW Santa Rita power purchase agreement which expires in August. Meanwhile, we are also focused on the benefits of completing our geothermal drilling campaign and commissioning of our growth project,” he added.
