First Gen Corporation reported a 15.8 percent improvement in audited consolidated net income to $16.7 million last year from the $14 million it reported in 2008.

In a disclosure to the Philippine Stock Exchange Monday, the firm said consolidated revenues were 23 percent lower at $1 billion in 2009 from the $1.3 billion registered in the previous year.

First Gen did not provide more details pending the filing of its financial statement. However, it posted a significant drop in net income for the first 9 months of the year due to an asset writedown and foreign exchange losses.

The firm reported that net income fell 85 percent to $7 million in January to September 2009 from $45.8 million in the same period last year.

The company attributed the decline to a one-time, non-cash writedown of the deferred tax assets of its geothermal affiliate, Energy Development Corporation (EDC), following the implementation of the Renewable Energy Act in January 2009.

EDC wrote down P3 billion in deferred tax assets, resulting in a 47.7 percent drop in its net income to P1.3 billion during the first nine months of 2009. Excluding this extraordinary item, however, EDC's core net income was 6.3 percent higher at P5.1 billion.

“The writedown is a one-time consequence of the RE Act. The company's future operations will continuously enjoy substantial benefits,” said First Gen chief finance officer Giles Puno.

Apart from losses arising from the writedown, First Gen said $2.9 million in unrealized foreign exchange losses “further exacerbated” its recent financial performance.

Nevertheless, the company said its business remains stable, with the steady operational results of its main power generating assets, and its continued financing program.

During the nine-month period of 2009, First Gen's 1,000-megawatt Santa Rita and 500-MW San Lorenzo natural gas-fired plants consistently enjoyed average dispatch levels in excess of 80 percent.

First Gen also operates the 225-MW Bauang power plant, the 112-MW Pantabangan-Masiway hydroelectric power plants, and the 1.6-MW Agusan mini hydro power plant.