First Gen Corporation reported an attributable net income to parent of $35.0 million for the year ended 2011, a decline of 50.1% compared with last year’s $70.2M.
The decline was mostly attributable to the lower income contribution from its affiliate, Energy Development Corporation (EDC), as it incurred a loss of $9.3M in 2011 compared with an income contribution of $52.5M in 2010. The lower earnings from EDC had mainly resulted from the noncash impairment of $115.3M (or P5.0 billion) on the Northern Negros Geothermal Project and forgone steam revenues of P1.8B following EDC’s acquisition of the Bacon-Manito Geothermal Power Plants in September 2010. The noncash impairment charge was earlier reported in June 2011.
“…Despite the decreased earnings contribution of EDC in 2011, we continue to be a full believer in the future value of the company and have, in fact, continued to increase our ownership in the company…,” First Gen president Giles Puno said.
First Gen’s consolidated revenues rose by $119.3M, or 9.6%, to $1.4B in 2011 from $1.2B in 2010. The increased revenues reflected the higher dispatch and fuel prices of the 1,000-MW Santa Rita and the 500-MW San Lorenzo natural gas power plants.
The P10.0B perpetual preferred shares issued by First Gen in July 2011 enabled the company to prepay the P5.1B outstanding debt of subsidiary Unified Holdings Corporation and buy back some of its convertible bonds. As a result, consolidated interest expense dropped by $19.2M from $104.2M in 2010 to $84.9M in 2011.
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