First Gen full-year profit falls 12% to $245M

First Gen Corp. said its net income fell by 12 percent in 2024 as it suffered lower revenues and incurred higher expenses to sustain operations.

In a disclosure on Friday, the Lopez-led energy firm said its attributable recurring net income stood at $245 million (about P14 billion) last year from $277 million (P15.4 billion) the year before.

Consolidated revenues decreased by 3 percent to $2.408 billion (P137.3 billion).

First Gen said it incurred higher interest expenses after obtaining a P20-billion loan to purchase the 165-megawatt (MW) Casecnan Hydroelectric Power Plant.

“Higher profits from the natural gas business and the newly purchased Casecnan were able to partially offset the declines,” the company said.

First Gen’s natural gas portfolio comprised 65 percent of First Gen’s top line, while the subsidiary Energy Development Corp.’s (EDC) geothermal, wind and solar plants accounted for 32 percent. The remainder came from the firm’s hydro business unit.

The natural gas business saw a 12-percent jump in recurring earnings to end at $187 million (P10.7 billion). The 1,000-MW Santa Rita Power Plant and 500-MW San Lorenzo Power Plant delivered higher income due to savings in operating expenses and lower interest expenses as debt was serviced.

Mostly down

According to First Gen, the Santa Rita plant’s outstanding long-term debt was fully paid in May last year.

The firm’s liquefied natural gas (LNG) terminal posted higher recurring income because of terminal fees billed to natural gas facilities.

However, the 420-MW San Gabriel Power Plant reported a decrease in net income mainly due to a decline in electricity sales.

This resulted from the power supply agreement with Manila Electric Co. expiring in February last year, followed by a scheduled shutdown the next month.

Sales from the San Gabriel plant to the Wholesale Electricity Spot Market that began last April partially offset losses.

Meanwhile, the 97-MW Avion Power Plant’s net income dipped mainly due to the cost of repairing a gas turbine to be kept as a spare unit.

Subsidiary EDC’s recurring attributable income tumbled by 36 percent to $75 million as geothermal power plants recorded lower electricity sales and higher operating expenses from steam field maintenance and work-over activities.