EARNINGS: First Gen 2010 profits rise up to $121M

Power firm First Gen Corp.’s profits rose to $121 million last year, from $95 million in 2009, the company said Monday. In a disclosure to the Philippine Stock Exchange, First Gen said the increase in earnings was driven by the strong operating performance of First Gas group, First Gen Hydro Power Corp., and Energy Development Corp. First Gen, a Lopez-led company, is engaged in the business of power generation through its operating subsidiaries such as the First Gas group, First Gen Hydro, and Energy Development. Sales of First Gen also jumped to $1.2 billion last year, up from 2009’s $1 billion, the company said. The disclosure said the “reliable dispatch" of First Gas’ 1,000-megawatt (MW) Santa Rita and 500-MW San Lorenzo natural gas-fired power plants were the main contributors to the increase in revenues. First Gas’ plants delivered stable earnings of $130.1 million. Energy Development, the country’s largest operator of geothermal-fired power plants, provided higher earnings to First Gen of $52.5 million, up from $31 million in 2009. The increase was attributed to the “full-year effect" of the operation of the 192.5-MW Palinpinon and 112-MW Tongonan geothermal power plants. Meanwhile, First Gen Hydro contributed $9.9 million to First Gen, up from 2009’s $1.5 million. The increase was due to better prices in the wholesale electricity spot market and higher dispatch of the hydro plants. — JE, GMA News