First Gen Corporation plans to reduce its capital expenditure (capex) budget for 2025, focusing mainly on its geothermal projects.
In a report by Business World, First Gen President and Chief Operating Officer, Francis Giles B. Puno revealed that the company’s 2025 capex program would be around Php 35 billion.
He added that nearly 90% of the 2025 budget would be allocated to geothermal activities, particularly for drilling new wells.
The company is prioritizing its drilling programs and completing the construction of power plants, with 83 megawatts (MW) expected to be operational by next year.
In 2024, First Gen allocated a capex budget of USD 1.27 billion, or roughly Php 74.4 billion, with USD 560 million dedicated to its hydro platform, including the acquisition of the Casecnan Hydroelectric Power Plant.
USD 670 million was set aside for its renewable energy subsidiary, Energy Development Corporation (EDC), while the remaining funds were directed toward natural gas projects, including the LNG Terminal Project.
Puno explained that the company had already completed its capex programs for gas and hydro, which is why the budget for 2025 would be smaller.
Meanwhile, the capex for geothermal projects remains ongoing, with the company focused on completing its geothermal programs.
In 2025, First Gen aims to drill about 16 new wells, investing heavily in its well-drilling program.
Puno also pointed out that the company faces challenges with aging power plants, but they are working to maximize the steam capability of their concessions through technology upgrades.
There are no comments
Add yours