First Gen Corporation 2024 Attributable Recurring Net Income at US$245M

First Gen Corporation (First Gen or the Company), the Lopez Group‘s clean and renewable energy solutions provider, reported a 12% decrease in attributable recurring net income for 2024 at US$245 million (P14.0 billion) in comparison to US$277 million (P15.4 billion) in 2023.

First Gen’s geothermal portfolio, through Energy Development Corporation (EDC), reported a combined decline in revenue and an increase in cash operating expenses as it focused on its drilling operation program in 2024. The Parent likewise incurred higher interest expenses following its availment of a P 20 billion loan for the purchase of the 165MW Casecnan Hydroelectric Power Plant (Casecnan). Higher profits from the natural gas business and the newly-purchased Casecnan were able to partially offset the declines.

The Company generated US$2,408 million (P137.3 billion) in revenues in 2024. This was only 3% lower in comparison to revenues generated of US$2,475 million (P137.7 billion) in 2023. The natural gas portfolio accounted for 65% of First Gen’s total consolidated revenues, while 32% came from EDC’s geothermal, wind, and solar plants. The balance comes from the Company’s hydro business unit. 

The natural gas business unit reported a 12% increase in recurring earnings for 2024 to US$187 million (P10.7 billion) from US$166 million (P9.2 billion) last year. Both the 1,000 MW Santa Rita Power Plant (Santa Rita) and 500 MW San Lorenzo Power Plant (San Lorenzo) delivered higher income due to savings in operating expenses and lower interest expenses as debt was serviced. Santa Rita fully paid off its outstanding long term debt in May 2024. In addition, the LNG Terminal had a higher recurring income in 2024 due to the terminal fees billed to the natural gas plants. The merchant 420MW San Gabriel Power Plant (San Gabriel) had lower net income mainly due to a decline in kilowatt hour sales as a result of the expiry of its power supply agreement with Meralco last February 2024, and its planned major outage in March 2024. This was partially offset by San Gabriel’s sales to the WESM beginning April 2024. The 97MW Avion Power Plant also had lower net income mainly due to the cost of repairing a gas turbine to be kept as a spare unit. 

EDC’s recurring attributable income (ex-Hydro) at US$75 million (P4.3 billion) for 2024 was 36% lower than its recurring attributable income of US$119 million (P6.6 billion) in 2023. The geothermal power plants under EDC generated lower sales and operating income due to a reduction in electricity sold, and higher operating expenses from steamfield maintenance and workover activities. The Leyte and Negros Power Plants both had planned maintenance outages and forced outages in 2024. The geothermal unit also incurred higher interest expenses from new debt.

The hydro platform’s contribution to First Gen’s recurring earnings was at US$19 million (P1.1 billion) for 2024. The Casecnan Plant contributed US$16 million (P891.6 million) after its turnover to First Gen in February 2024. Following the turnover, the hydro plant started to serve First Gen’s portfolio of customers last June, aside from selling to the spot market. This offset the slightly lower recurring income of the 132 MW Pantabangan-Masiway hydro power plants (PMHC) of US$3 million (P174.4 million) from US$4 million (P224.5 million) in the previous year. PMHC had a reduction in the volume of electricity sold due to its low water reservoir levels. It was also affected by lower Wholesale Electricity Spot Market prices. The decline was buffered by its higher contract prices and earnings from the Reserve Market. 

“First Gen is forging ahead on many fronts to crystallize the uniqueness and value of our clean and renewable portfolio. We are committed to find solutions to help address the country’s critical issue of energy security. On the gas side, we will be receiving our seventh LNG cargo since the start of our terminal’s operations in the second half of 2023. We expect LNG supply deliveries in April and May to address the increased electricity demand during the hot summer months. Our gas-fired plants should benefit from the newly-enacted Natural Gas Law, but we are reviewing our options for the 1,000 MW Santa Rita power purchase agreement which expires in August. Meanwhile, we are also focused on the benefits of completing our geothermal drilling campaign and commissioning of our growth project. This will provide 24/7 baseload renewable energy electricity to our growing customer base,” First Gen President and COO Francis Giles B. Puno stated.

*U.S. Dollar balances were translated to Philippine Peso using the weighted average rate of US$1.00:P57.034 for 2024 and US$1.00:P55.639 for 2023. Philippine Peso figures are provided for reference only. First Gen reports its financials in US Dollars. 

​First Gen is a leading independent power producer in the Philippines that primarily utilizes clean and indigenous fuels such as natural gas, geothermal energy from steam, hydroelectric, wind, and solar power. The Company has 3,668MW of installed capacity in its portfolio, which approximately accounts for 18% of the country’s gross generation. First Gen has set a target to grow to 13,000MW by 2030. First Gen is a subsidiary of First Philippine Holdings Corporation, one of the most established conglomerates in the Philippines, and has over 20 years of experience in power development. It is part of the Lopez Group of Companies.