First Gen Corporation reported an attributable net income to parent of $11.5 million for the nine months ended 2011, a decline of 82.6% compared to the same period last year. The decline is mostly attributable to an impairment charge of P5.0 billion by its affiliate Energy Development Corporation (EDC) for its 49-MW Northern Negros Geothermal Power Plant. The noncash charge was earlier reported in June of this year.

First Gen Hydro Power Corporation, the owner of the 132- MW Pantabangan-Masiway hydroelectric power plants, contributed lower revenues due to limited water availability coupled with a decline in the wholesale electricity spot market prices.

First Gen’s consolidated revenues were higher by $45.9M, or 4.7% to $1.0B in the nine months ended 2011. 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.

First Gen’s impairment charge was partially cushioned by lower interest expenses resulting from reduced debt levels and interest rates. Borrowing costs declined by 16.9% to $66.5M, from $80.1M as of September 2010. Other than scheduled loan payments of the company’s subsidiaries, First Gen also bought back substantial amounts of its convertible bonds. The outstanding amount of the bond is now $70.0M, down 73.1% from the original issued amount of $260.0M. First Gen also issued non-call seven-year perpetual preferred shares of P10.0B last July 2011. Part of the proceeds was used to prepay the P5.0B outstanding debt of Unified Holdings Corporation, the owner of the 60.0% stake in the San Lorenzo plant.