First Gen Corp reported that its hydro acquisitions late last year played a prime role in helping to boost income with the firm's Q1 net earnings up a third to US$34M.
The Philippine generator said that the Pantagbangan and Masiway hydro plants, which have a combined capacity of 112MW, contributed US$9M in the quarter to 31 March.
First Gen bought the two hydro plants at auction in November 2006. It plans to upgrade and expand the plants at a cost of about US$100M, taking the total capacity of the stations to 143MW. The budget for the upgrade is US$25M.
Group revenues in Q1 benefited from hydro generation, improved dispatch from elsewhere in the portfolio which was also experiencing higher fuel prices. Away from operating activities, First Gen also benefited form extraordinary income from insurance claims.
By the end of the year the plants had contributed US$11M in earnings before interest, taxes, depreciation and amortisation (EBITDA). Revenues from the plants were US$13M and net income US$6M.