Megawatts, Margins, and Growth Improvement
Watch the video with Andrew Stotz or read a summary of the World Class Benchmarking on First Gen Corporation.
Background
First Gen Corporation, set up in 1998, is the Philippines’ third-largest electricity generator. Most of the electricity is contracted for sale under long-term power-purchase agreements. It owns 50% of Energy Development Corporation (EDC PM), the world’s second-largest geothermal-energy producer. Including EDC, FGEN will have 21 plants by end 2016, all domestically operated.
It owns 50% of EDC (EDC PM), the world’s second-largest geothermal-energy producer. Including EDC, FGEN will have 21 plants by end 2016, all domestically operated.
Business Description
All of FGEN’s revenues come from electricity generation and related sales, and all of its power facilities are located in the Philippines. The company currently has a capacity of 2,959MW which accounts for 23% of Philippines’ domestic output.
FGEN breaks down its electricity revenue into the following three operating segments: just under two-thirds is gas-powered facilities, just under one-third is geothermal, and the rest is hydro.
Most of its electricity generation is sold under long-term power-purchase agreements, including deals with the Manila Electric Company and the National Power Corporation. These deals ensure that operating, maintenance and fuel costs can be fully covered, and ensure a more stable return on investment in the facilities for the operator.
The 98MW gas-fired Avion power plant and the 414MW San Gabriel power plant are currently in commissioning phase and will start to deliver profits soon. A third plant will be launched in two 450MW phases, both planned for 2022-2024.
Leadership
Frederico Lopez is the Chairman and CEO of First Gen Corporation, First Philippine Holdings Corporation (The mother company to FGEN which owns 66% of the shares), and its 50%-owned subsidiary Energy Development Corporation (EDC PM).
Francis Giles Puno is the President and Chief Operating Officer of FGEN and also became the President and Chief Operating Officer of First Philippine Holdings Corporation in October 2015.
World Class Benchmarking
Profitable Growth has improved to average rank in the past 12 months. This means that FGEN ranks better among the better 145 of 290 large Utilities companies globally.
Profitability maintained its average rank but Growth improved two steps, and drove the Profitable Growth rank.
Profit margin improved as well. Growth came from this good Margin change as Sales growth fell in rank.
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