First Gen Corporation Reported a 4% Increase in Attributable Recurring Net Income for 2023 at US$277 Million (P15.4 Billion)

First Gen Corporation, the Lopez Group's clean and renewable energy provider, announced a 4% increase in attributable recurring net income for 2023, reaching US$277 million (P15.4 billion) from US$265 million (P14.3 billion) in 2022. Energy Development Corporation's (EDC) geothermal portfolio generated record earnings due to increased operational revenue as energy prices rose. The Parent also contributed to the greater 2023 income by benefiting from increased interest income due to better yields on its domestically generated funds.

The Company reported US$2,475 million (P137.7 billion) in revenues for 2023, a 7% decrease of US$192 million (P6.4 billion) from US$2,667 million (P144.1 billion) from 2022. The slightly lower revenues are a result of a decrease in revenues across all the platforms. The decline is mostly attributable to lower fuel revenues, which positively redound to lower electricity prices for consumers. There was a drop in natural gas and liquid fuel prices globally. This was also accompanied by lower electricity output sold by the natural gas platform. EDC and First Gen Hydro Power Corporation also had lower sales volumes though partly offset by higher average selling prices. 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 plants and First Gen Energy Solutions, its Retail Electricity Supplier.

The natural gas platform reported a 5% drop in recurring earnings for 2023, to US$184 million (P10.25 billion) from US$190 million (P10.28 billion) in 2022. The 420 MW San Gabriel Power Plant (San Gabriel) and the 97 MW Avion Power Plant (Avion) generated increased recurring revenues due to their full availability for the year combined with lower fuel prices. Both the 1,000 MW Santa Rita and 500 MW San Lorenzo Power Plants generated lower recurring earnings, owing to higher interest expenditures.
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FGEN LNG Corporation (FGEN LNG), the company's incorporated special purpose entity for the operation of the Interim Offshore LNG Terminal (IOT), has begun to receive commissioning income from its pre-commercial operations. (It also recorded a non-recurring other income of $25 million from construction delay claims.) In 2023, FGEN LNG reported $8 million in revenue and a recurring net loss of $20 million.
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EDC's recurring earnings for 2023 were US$119 million (P6.6 billion), 24% higher than the recurring income of US$96 million (P5.2 billion) in 2022. As electricity rates rose, EDC's geothermal power facilities saw higher sales and operating incomes. Furthermore, EDC made fewer purchases of replacement power due to decreased contracted quantities following the expiration of the Unified Leyte Power Purchase Agreement in July 2022. In 2023, the 150 MW Burgos Wind Project continued to benefit from increased wind conditions.

The hydro platform contributed $4 million (P212 million) to First Gen's recurring earnings in 2023, a 23% decrease from $5 million (P267 million) in 2022. The Pantabangan-Masiway power plants' electricity sales volume decreased as a result of the transfer of their power supply contract to EDC in August 2022, as well as low water reservoir levels. The decline in electricity sales was mostly offset by an increase in Wholesale Electricity Spot Market volumes sold and decreased purchases of replacement power. Savings on administrative expenses and improved interest revenue also helped to mitigate the decline.

“2023 was a positive year for First Gen as EDC achieved its highest earnings to date, while FGEN LNG started to commission. The Company was likewise declared the highest bidder for the 165 MW Casecnan Hydroelectric Power Plant (Casecnan). This year, these developments should translate to additions to First Gen’s earnings as the LNG Terminal reaches commercial operations and the effectivity of the Terminal Lease Agreement with Gas Aggregator Philippines, Inc. happens. Casecnan will likewise be a positive addition to the bottom line from day one of its turnover,” First Gen President and COO Francis Giles B. Puno stated.
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First Gen is a leading independent power producer in the Philippines that uses clean and indigenous fuels, including natural gas, geothermal energy from steam, hydroelectric, wind, and solar power. The company has 3,668 MW of installed capacity in its portfolio, which contributes to roughly 19% of the country's gross generation. First Gen is a subsidiary of First Philippine Holdings Corporation, one of the Philippines' most established conglomerates, with more than 20 years of experience in electricity development. It is part of the Lopez Group of Companies.