First Gen Corp's 1H15 recurring net income drops to USD83.9m

Subsidiary's lower earnings just one factor.

First Gen Corp’s 1H15 recurring net income dipped to USD83.9m.

According to a research note from Maybank ATR Kim Eng, this was primarily due to the lower earnings booked by subsidiary Energy Development Corp resulting from the outage of the Tongonan plant in Leyte.

Factors mentioned also were trading losses on the Unified Leyte strip business, higher operating expenses, and typhoon-proofing works.

Here's more from Maybank ATR Kim Eng:

First Gen Hydro Power Corp likewise posted a dip in revenues as the plants suffered from weak spot market prices and a reduction in electricity production caused by lower water availability.

The combined earnings contribution of the natural gas-fired plants for 1H15 was higher at USD67.1m due to lower interest expenses and the receipt of additional insurance claims last April by the 500MW San Lorenzo power plant for business interruption and machinery breakdown in 2013.