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First Gen hikes authorized capital stock to ₱13.2 billion

First Gen hikes authorized capital stock to ₱13.2 billion

By Myrna M. Velasco

Lopez-owned First Gen Corporation will increase its authorized capital stock to ₱13.2 billion from currently at ₱11.6 billion, to be executed through the generation of additional preferred shares.

The company disclosed to the Philippine Stock Exchange (PSE) that it will be creating 160 million Series 1 redeemable preferred shares with a par value of ₱1.00 per share.

The shares, as designed, shall be “entitled to cumulative dividends, non-voting, non-participating, redeemable at the option of the Corporation and with a dividend rate to be determined by the board of directors.”

The company added that the creation of the new shares for the capital stock hike would be lodged for the approval of the stockholders during the annual meeting on May 13 this year.

In another development, First Gen indicated that its subsidiary FGEN San Isidro Hydropower Corporation will be selling its 100 percent stake to another subsidiary FG Mindanao Renewables Corp.

First Gen generally leans on power plant developments that are of “clean energy” genre – primarily renewables as well as gas-fired power facilities.
This year is expected as another turning point phase for the Lopez firm, with anticipations that it will finally bring its targeted liquefied natural gas (LNG) terminal venture into final investment decision (FID) juncture.

As previously announced by company executives, FID on the project will likely be reached within the first half of the year. The company’s joint venture (JV) partner in this development is Tokyo Gas Co. Ltd. which has 20 percent stake in the corporate vehicle of the propounded LNG import facility.

The company is sorting out a two-pronged approach on the proposed LNG terminal project: First shall be the floating storage and regasification unit (FSRU) which it is eyeing to advance to commercial operations by latter part of next year until early part of 2022; and the second phase will be the planned US$1.0-billion onshore terminal that will then serve the country’s longer term requirements for gas fuel.

First Gen has the largest fleets of gas-fed power generating assets in the country with aggregate capacity of 2,011 megawatts (MW) for its 1,000MW Santa Rita; 500MW San Lorenzo; 414MW San Gabriel and 97MW Avion power facilities.

To partly underpin the development of its LNG import facility and to help satiate the country’s long-term electricity needs, First Gen is also casting on blueprint capacity expansion for its gas plants by additional 1,200MW via its targeted Saint Joseph and Santa Maria power plant ventures.