First Gen Corporation (FGEN) posted a 3% rise in attributable recurring net income for the first nine months of 2025, reporting USD 212 million (PHP 12.1 billion) despite weaker revenues from its natural gas and geothermal portfolios.

The Lopez-led company said earnings growth was driven largely by stronger hydro generation and a profitable showing from its LNG terminal unit, FGEN LNG Corporation.

Revenues for the period slipped 3% to USD 1.787 billion (PHP 102.0 billion). The decline stemmed mainly from lower electricity sales from the 420-MW San Gabriel natural gas plant after its power supply agreement with Meralco expired in February 2024. Energy Development Corporation (EDC), the group’s geothermal subsidiary, also posted lower sales due to softer spot market prices.

Natural gas accounted for 65% of consolidated revenues, geothermal-wind-solar for 31%, and hydro for 4%.

Recurring income from the natural gas fleet dropped 8% to USD 138 million (PHP 7.9 billion). Higher earnings from the Santa Rita, San Lorenzo, and Avion plants—supported by lower interest expenses—were offset by San Gabriel’s weaker merchant revenues. FGEN LNG delivered USD 31 million (PHP 1.8 billion) in recurring income.

The gas assets, including the LNG terminal, are currently the subject of a planned 60% equity sale to Prime Infrastructure Capital Inc. First Gen said both parties continue to work on fulfilling closing requirements.

EDC’s recurring income fell 36% to USD 38 million (PHP 2.2 billion), reflecting lower operating income due to reduced market prices and higher interest expenses tied to drilling and expansion projects. EDC is completing 83 MW of geothermal capacity and 40 MWh of energy storage.

Hydro operations delivered the sharpest improvement. Recurring income surged 65% to USD 23 million (PHP 1.313 billion), supported by higher water elevations and stronger contracted pricing. The Pantabangan-Masiway complex posted USD 13 million (PHP 742 million), up from USD 3 million last year, while the Casecnan plant contributed USD 11 million (PHP 628 million) following its full-year operation under First Gen after the February 2024 takeover.

“As a whole, we were happy to see First Gen’s net income steadily increase this year. This was despite industry dynamics of lower electricity prices and softer demand,” First Gen President and COO Francis Giles B. Puno said. “We also continue to negotiate with Meralco for an extension of the Santa Rita Power Purchase Agreement as the plant is critical to the country’s energy security.”

What implications do you see for the country’s gas supply outlook and contracting landscape as First Gen’s portfolio transitions and major PPAs come up for renewal?

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