First Gen’s recurring income dropped 4% in the first quarter of 2025, with geothermal underperformance offsetting revenue growth from natural gas and hydro platforms, and new income streams from its LNG business.

First Gen Corporation reported a recurring net income attributable to equity holders of $77 million (PHP 4.49 billion) for Q1 2025, down from $81 million (PHP 4.52 billion) in the same period last year.

The decline was primarily due to lower revenues from the Energy Development Corporation (EDC), the company’s geothermal arm. EDC’s generation output decreased due to maintenance activities at some plants, lower spot market prices, and higher interest expenses from newly acquired debt tied to project expansions and drilling programs.

The company’s consolidated revenues fell 2% to $583 million (PHP 33.8 billion), compared to $596 million (PHP 33.3 billion) in Q1 2024. Despite the overall dip, strong performance from its hydro platform and natural gas plants helped offset the revenue decline.

Natural gas remained the top contributor to First Gen’s revenue mix, accounting for 66% of consolidated revenues. Geothermal, wind, and solar assets from EDC contributed 30%, while hydro accounted for the remaining 4%.

First Gen’s natural gas portfolio recorded a 7% increase in recurring earnings to $46 million (PHP 2.7 billion), buoyed by interest savings from reduced debt levels across the 1,000 MW Santa Rita, 500 MW San Lorenzo, and 97 MW Avion power plants. However, the 420 MW San Gabriel plant posted lower earnings after its power supply agreement with Meralco expired in February 2024, leaving it exposed to market fluctuations.

Meanwhile, First Gen’s LNG subsidiary, FGEN LNG Corporation, started commercial operations in January 2025, adding $7 million in recurring income for the quarter.

The hydroelectric platform reported strong results, contributing $11 million (PHP 619 million) in recurring earnings, up 37% from $8 million (PHP 435 million) last year. The increase was driven by improved reservoir levels and increased generation from Pantabangan-Masiway and the newly acquired 165 MW Casecnan Hydroelectric Power Plant.

EDC’s geothermal platform recorded a 22% drop in recurring income to $20 million (PHP 1.2 billion), from $26 million (PHP 1.4 billion) in Q1 2024. The lower income stemmed from reduced energy sales, lower electricity prices, and higher debt servicing.

Casecnan added $4 million (PHP 242 million) in recurring income for the full quarter following its acquisition in February 2024. Pantabangan-Masiway contributed a steady $7 million (PHP 380 million), aided by favorable hydrological conditions but tempered by weak market prices.

“First Gen’s portfolio of power plants are available for dispatch as the country experiences this punishing heat,” said President and COO Francis Giles Puno. “We have been hard at work in making sure that the vital resources our company provides are able to deliver, especially during these coming local elections.”

The company continues to focus on expanding its renewable and low-carbon energy portfolio to meet growing power demand while advancing its sustainability goals.

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