First Gen Corporation reported flat attributable recurring net income for the first half of 2025 at USD 151 million (PHP 8.6 billion), slightly up from USD 150 million (PHP 8.4 billion) in the same period last year, as strong hydro performance offset weaker results from its geothermal and natural gas businesses.

“First Gen’s steady performance in the first half of 2025 was an achievement as the industry was affected by a softer increase in power demand, as well as lower electricity prices. We, however, continue to see challenging market conditions with the local economy not performing as strong as expected in 2025,” said First Gen President and COO Francis Giles B. Puno.

Energy Development Corporation (EDC), which operates First Gen’s geothermal portfolio, posted lower recurring net income in the first two quarters due to reduced spot market prices and higher finance charges from new debt for its drilling and growth projects. Subsidiary First NatGas Power Corp., owner of the 420 MW San Gabriel natural gas-fired power plant, also saw a revenue decline after its power supply agreement with Meralco expired in February 2024.

First Gen’s consolidated revenues fell 5% to USD 1.21 billion (PHP 69.3 billion) from USD 1.28 billion (PHP 72.1 billion) in the same period last year, mainly due to lower electricity volumes sold in its natural gas platform, particularly San Gabriel. Natural gas accounted for 66% of total consolidated revenues, geothermal, wind, and solar for 30%, and hydro for 4%.

Recurring earnings from the natural gas portfolio dropped 4% to USD 96 million (PHP 5.5 billion) from USD 100 million (PHP 5.6 billion) in 1H24. While the 1,000 MW Santa Rita, 500 MW San Lorenzo, and 97 MW Avion plants—also part of the First Gen group—reported higher earnings from lower outstanding debt and reduced operating expenses, these gains were offset by San Gabriel’s weaker merchant sales.

FGEN LNG Corporation, which commenced commercial operations in January 2025, contributed USD 22 million (PHP 1.3 billion) in recurring net income from terminal fees billed to First Gen’s gas plants.

EDC’s attributable recurring income (excluding hydro) fell 22% to USD 34 million (PHP 2.0 billion) from USD 44 million (PHP 2.5 billion) last year. EDC is pursuing 83 MW of geothermal capacity growth and 40 MWh peak battery storage projects this year, including the 22 MW Tanawon geothermal project inaugurated on August 1, 2025.

Hydroelectric operations were the standout, delivering a 231% surge in recurring earnings to USD 15 million (PHP 850 million) from USD 5 million (PHP 254 million) last year. The 132 MW Pantabangan-Masiway plants posted USD 13 million (PHP 715 million), up from USD 4 million (PHP 219 million) in 1H24, driven by higher starting water levels, increased irrigation requirements, an additional planting cycle, and stronger power supply contract prices. The 165 MW Casecnan plant, taken over by First Gen in February 2024, contributed USD 2 million (PHP 140 million) after generating sales for the full six months of 2025.

With hydro’s exceptional performance balancing weaker gas and geothermal results, how should First Gen position its portfolio for future growth?

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