Lopez-led First Gen Corp. reported an 8% increase in attributable recurring net income for 2025, as stronger hydro generation offset weaker earnings from its geothermal unit amid lower spot market prices and higher operating costs.

The Lopez-led power producer said recurring net income reached USD 264 million (PHP 15.2 billion), up from USD 245 million (PHP 13.9 billion) in 2024, supported by higher electricity output from its hydro assets due to improved water levels.

Total revenues rose 6% to USD 906 million (PHP 52.1 billion), driven by increased electricity sales volume during the year.

The company’s renewable energy portfolio continued to dominate its revenue mix, with geothermal, wind, and solar assets under Energy Development Corp. (EDC) contributing 87% of consolidated revenues. Hydroelectric plants accounted for 11%, while the remaining 2% came from affiliates and the parent firm.

EDC’s attributable recurring income—excluding hydro—declined 31% to USD 52 million (PHP 3.0 billion), from USD 75 million (PHP 4.3 billion) in 2024. The drop was attributed to weaker Wholesale Electricity Spot Market prices and higher expenses tied to steamfield maintenance and well workovers, as well as increased interest costs following expanded drilling and project development.

Despite the earnings decline, EDC expanded capacity with 77 MW of geothermal additions and 40 MWh of battery energy storage completed in 2025, with an additional 6 MW of geothermal capacity slated for commissioning in 2026.

Hydro assets emerged as a key earnings driver, with recurring income from the platform surging 73% to USD 33 million (PHP 1.9 billion). The 132 MW Pantabangan-Masiway complex led the growth, benefiting from higher reservoir levels that enabled increased generation and improved contract pricing.

The results come amid a major portfolio shift following First Gen’s sale of a 60% stake in its natural gas business to Prime Infrastructure Capital Inc. in November 2025 for PHP 50 billion, subject to adjustments and potential earnouts.

The transaction resulted in the deconsolidation of major gas-fired assets, including the Santa Rita, San Lorenzo, San Gabriel, and Avion power plants, as well as the proposed Santa Maria project and its interim offshore LNG terminal.

From the remaining 40% stake, First Gen recognized USD 11 million (PHP 0.7 billion) in equity earnings starting November. Income from the gas business prior to the sale was booked as discontinued operations at USD 200 million (PHP 11.5 billion), up 21% year-on-year, while the transaction generated a one-time gain of USD 159 million (PHP 9.2 billion).

“The previous year brought about a fundamental change in First Gen as we decided to sell down our controlling stake in the gas assets. We decided to strategically pivot into our renewable energy investments,” First Gen President and COO Francis Giles B. Puno said in an official release.

“2026 will be the year EDC’s investments in its drilling program bears significant fruit, while the recently announced partnership with Prime Infra for the 600 MW Wawa and 1400 MW Pakil Pumped Storage Hydro Projects marks our debut as greenfield hydro developers,” he added.

What are your thoughts on First Gen’s pivot away from gas and deeper push into renewables—does this strengthen its long-term position in the Philippine power sector?

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