May 28, 2013

First Gen stock plunges after fire incident in San Lorenzo; San Lorenzo capacity halved

First Gen Corp. has shut down a unit of its 500-megawatt San Lorenzo natural gasfired power plant in Batangas after a fire broke out at one of its transformers early Tuesday morning.

First Gen shares plunged 7.85%  to close at P20.55. First Gen explained that a fire was detected around 3:03 a.m. yesterday at the Unit 60 transformer of the San Lorenzo plant, which is operated by its wholly owned subsidiary First Gas Power Corp.

The incident, the company explained, immediately activated the power plant’s automatic transformer protection system, which isolated the power generation units to ensure that no damage was incurred. The fire was subsequently was put out at around 3:21 a.m. The incident is now being investigated.

In the meantime, the subject transformer has become inoperative and has reduced the facility’s generating capacity. First Gen, however, assured that the remaining unit of San Lorenzo continued to operate at 250 MW. - WealthSec