First Gen Corp’s Earnings Rebound in 2025: A Closer Look
First Gen Corporation, under the leadership of CEO Lopez, has demonstrated a noteworthy rebound in earnings for 2025, signaling a robust recovery and strategic shifts in its operations. This surge is primarily attributed to a marked improvement in hydropower generation, which effectively offset the weaker performance of its geothermal business segment.
Earnings Growth Overview
In a recent disclosure to the Philippine Stock Exchange (PSE) on March 25, First Gen reported an eight percent increase in its attributable recurring net income, rising to $264 million (approximately ₱15.2 billion) from $245 million (about ₱13.9 billion) the previous year. This growth reflects the company’s resilience in navigating a challenging energy market.
Additionally, First Gen’s revenues surged by six percent, climbing from $849 million (₱49 billion) to $906 million (₱52 billion). The increase in revenue can be directly linked to a greater volume of electricity sold during the year, positioning First Gen favorably in the competitive energy landscape.
Hydropower Contributions
A significant player in this earnings rebound has been First Gen’s hydropower portfolio, which saw a hefty contribution of $33 million (approximately ₱1.9 billion) to the company’s earnings—a 75 percent increase from the previous year’s $19 million (₱1 billion). This growth can be attributed to improved irrigation conditions and higher prices for power supply contracts, which collectively boosted hydropower generation efficiency.
Challenges in Geothermal Segment
Conversely, the geothermal segment faced challenges, with the Energy Development Corporation (EDC), a subsidiary of First Gen, experiencing a 31 percent decline in attributable recurring income, totaling $52 million (around ₱3 billion). This downturn was chiefly due to underperformance in its Leyte and Mindanao assets, which fell victim to maintenance activities and well workovers. However, notable improvements were reported from the Palinpinon geothermal plants, indicating potential for future recovery.
Rising Costs and Strategic Moves
EDC also grappled with increased interest expenses, stemming from higher debt levels incurred due to an expansive drilling program and ongoing project expansions. This financial strain comes at a time when the company is working on bettering operational efficiencies to mitigate losses.
Adding a layer of complexity, First Gen has undergone significant changes in its business structure following a 60-percent sale of its gas business to Prime Infrastructure Capital Inc. (Prime Infra). Consequently, First Gen no longer consolidates its natural gas assets, including interim offshore LNG terminals. Despite this change, the remaining stake in gas assets generated earnings of about $11 million (₱700 million) in November, complemented by a notable $159 million (₱9.2 billion) gain from the sale.
Future Projections and Investments
Looking ahead, First Gen President Francis Giles Puno expressed confidence in the organization’s strategic positioning towards renewable energy. With plans for EDC to commission an additional six megawatts (MW) of geothermal capacity in the near future, the company is taking significant steps in expanding its renewable energy footprint. In addition, the completion of 77 MW of geothermal infrastructure and 40 megawatt-hours (MWh) in battery and energy storage projects enhances its competitive edge in the renewable sector.
Puno further highlights that the year 2026 will be pivotal, as investments in the drilling program are anticipated to yield concrete results. The recent agreement with Prime Infra to develop the 600-MW Wawa and 1,400-MW Pakil pumped storage hydro projects marks First Gen’s entry as a developer in the greenfield hydro sector, setting the stage for new growth avenues.
Conclusion
The upward trajectory in First Gen Corp’s earnings, fueled by a revitalized hydropower generation capacity, showcases the company’s adaptability in a dynamic energy market. While challenges remain in the geothermal sector, strategic partnerships and investment in renewable energy projects are poised to redefine First Gen’s operational landscape in the years to come.