July 23, 2014

FGEN plants back to normal operations

In a disclosure to the Exchange, First Gen Corp (FGEN, Buy) announced its power plants are now back to normal operations. A total of 1000MW from all four units of the Santa Rita plant and the 500MW San Lorenzo plant have successfully resumed operations.

These plants were temporarily shut down in the aftermath of the recent typhoon due to flooding in the site. Meanwhile, FGEN also said that Unit 40 of Sta. Rita was returned to operation after it has completed the installation and commissioning of the new replacement transformer.

Our take: The resumption of the commercial operations of Unit 40 is ahead of the original 4Q14 target, while the quick restoration of the power plants following the typhoon should enable FGEN's primary units to produce at full capacity again. We view this positively as the group has shown significant progress in terms of execution and this should address a key concern on management.– WealthSec