First Gen reports huge drop in earnings
11/10/2009 | 06:49 PM
First Gen Corp., the power generation arm of the Lopez group, has posted a substantial drop in its net income for the first nine months of the year owing to one-time items which affected its revenues.
For the January to September period, First Gen’s earnings dipped 85 percent to $7 million from $45.8 million owing to one-time, non-cash write-down of the deferred tax assets of its geothermal associate, Energy Development Corp., owing to the implementation of the Renewable Energy Act.
It had also incurred losses owing to the dollar’s appreciation during the period.
“In addition, the $2.9-million unrealized foreign exchange loss in 2009 further exacerbated the variance between the 2009 and 2008 results," it said.
Last year, the company said it enjoyed unrealized gains of $22.2 million from foreign exchange movements.
These were, however, offset by savings in interest expense from the company's refinancing activities and benefits from its gas projects' lower deferred income tax. - GMANews.Tv
For the January to September period, First Gen’s earnings dipped 85 percent to $7 million from $45.8 million owing to one-time, non-cash write-down of the deferred tax assets of its geothermal associate, Energy Development Corp., owing to the implementation of the Renewable Energy Act.
It had also incurred losses owing to the dollar’s appreciation during the period.
“In addition, the $2.9-million unrealized foreign exchange loss in 2009 further exacerbated the variance between the 2009 and 2008 results," it said.
Last year, the company said it enjoyed unrealized gains of $22.2 million from foreign exchange movements.
These were, however, offset by savings in interest expense from the company's refinancing activities and benefits from its gas projects' lower deferred income tax. - GMANews.Tv
