LOPEZ-LED First Gen Corp. reported on Wednesday an attributable net income of $77.21 million for the second quarter, marking a 29.6% increase from $59.56 million a year ago, driven by its renewable energy (RE) business.
However, for the April-to-June period, First Gen’s gross revenues declined by 9.7% to $634.78 million from $703.19 million in the same period last year, the company’s second-quarter report showed.
The decline in the company’s gross revenue for the second quarter was offset by the decrease in its gross expenses for the period, which went down by 17.2% to $481.12 million from $580.82 million a year ago.
For the January-to-June period, First Gen reported an expanded attributable net income of $166.44 million, reflecting a 36.1% increase from $122.31 million a year prior.
Its recurring net income, adjusted for non-recurring items for the first half, reached $166.67 million, showing a 30.1% rise from $128.07 million a year ago.
Revenues for the first half of the year increased by $13.3 million, or 1.6%, to $1.29 billion from $1.27 billion, primarily due to the higher contribution of its renewable energy segments.
First Gen said that revenues from the geothermal, wind, and solar (GWS) platform of its renewable energy arm, Energy Development Corp. (EDC), surged by $48.4 million, or 12.5%, to $434.1 million from $385.7 million in the corresponding period a year ago.
Elevated natural gas prices and Wholesale Electricity Spot Market rates all contributed to the company’s revenues for the period.
The company’s natural gas portfolio constituted 63% of its total consolidated revenues, while its renewable energy arm contributed 34%, and the remaining 2% came from its hydropower plants.
“It was EDC that mainly delivered higher earnings as a result of better operating income from higher electricity prices,” First Gen said.
EDC’s attributable net income contribution for the first half went up to $74.3 million or double the $37 million a year ago.
The profit rise was mainly due to higher electricity selling prices, lower plant operating and maintenance cost, the company said.
“We hope to carry over the good performance of the first half in the next six months. We are looking forward to a number of significant milestones that are expected to happen for the remainder of the year, including the commercial operations of our LNG terminal at the First Gen Clean Energy Complex,” Francis Giles B. Puno, president and chief operating officer of First Gen said in a statement.
At the stock exchange on Wednesday, shares in the company gained 65 centavos or 3.30% to end at P20.35 apiece. — Ashley Erika O. Jose