The nine-month profitability of publicly-listed First Gen Corporation suffered a steep plunge of 85 percent to $7.0 million from $45.8 million in the same period last year.

“The decline in net income was principally attributable to a one-time, non-cash write down of the deferred tax assets of First Gen’s geothermal associate, Energy Development Corporation, due to the recent implementation of the Renewable Act,” the company noted in its press statement.

The company said the “$2.9 million unrealized foreign exchange loss in 2009 further exacerbated the variance between the 2009 and 2008 results.”

EDC, it said, wrote down P3.0 billion in deferred tax assets as a result of the RE Law’s implementation. The company though still managed to post P1.3 billion income during the period, though such was 47 percent lower than last year’s level.

The most hopeful prognosis, according to the company, is its stabilizing financial health, noting that its “successful financing program” enabled it to bring down its interest expense to $60.5 million from last year’s high of $75.4 million.

“Going forward, our financing program particularly the P15 billion rights issuance, is designed to further reduce our debt obligations with equity,” First Gen chief finance officer Francis Giles Puno said.

Operations-wide, First Gen noted that its generating assets “continue to deliver steady operational results.”

It added that both its 1,000-megawatt Sta. Rita and 500-MW San Lorenzo plants “consistently enjoyed average dispatch levels in excess of 80%.”