First Gen Corp. reported a 3-percent increase in attributable recurring net income to $212 million at end-September this year from $205 million in the same period a year ago, mainly due to the strong performance of its hydro and liquefied natural gas (LNG) operations.
The Lopez-led firm presents its financial report in US dollars because most of the business transactions are paid in the US currency.
‘The company’s hydro portfolio delivered a jump in earnings as it generated higher volumes of power this year, while FGEN LNG Corp. (FGEN LNG) was likewise profitable from its operations,’ it said in a statement.
Revenues from January to September this year stood at $1.79 billion, down 3 percent year-on-year from $1.85 billion. This was brought about lower electricity sales from its 420-megawatt (MW) San Gabriel gas power plant since the deal with its off-taker expired in February 2024. Moreover, FGen’s geothermal unit, Energy Development Corp. (EDC), suffered from lower revenues due to a reduction in spot market prices.
The natural gas business of First Gen contributed 65 percent of consolidated revenues, while 31 percent came from units Energy Development Corp. (EDC). The balance comes from FGen’s hydroelectric power plants.
Recurring earnings from its gas plants slightly declined to $138 million from $149 million while FGEN LNG contributed $31 million in recurring earnings, marking a profitable year for its operations.
Meanwhile, EDC’s recurring income dropped 36 percent to $38 million due to weak spot market prices and higher financing costs.
The hydro business reported a 65-percent surge in recurring income to $23 million.
Last June, First Gen said it will channel its capital from its core gas business to renewables and infrastructure, a move that will help achieve its 13-gigawatt (GW) renewables target by 2030.
This after the company agreed to sell 60 percent of its gas business to Razon-led Prime Infrastructure Capital Inc. for at least P50 billion.
A chunk of First Gen investments is allotted for expanding its renewable energy (RE) portfolio. In 2024, its total assets consisted of 28 percent gas investments while RE accounted for 72 percent.