Lopez feud deepens over ‘third poison pill’; First Gen profit slides
The Lopez family majority has flagged another alleged “poison pill” tied to Federico “Piki” Lopez, warning that several key subsidiaries could fall into default if he is removed from First Gen Corp.
In a statement on Wednesday, the Lopez majority said Energy Development Corp. (EDC), First Balfour and First Gen itself could face defaults tied to provisions linked to a P25-billion standby letter of credit obtained by parent firm First Philippine Holdings Corp. (FPH).
The facility, secured from BDO Unibank, was meant to help fund First Gen’s P62-billion investment in Prime Infrastructure Capital Inc.’s hydropower business.
According to the Lopez majority led by Eugenio “Gabby” Lopez III, the default provision was disclosed by First Gen in an April 17 press release.
“This is the third poison pill discovered,” the group said, describing the provisions as “booby traps” that would supposedly penalize companies if Piki Lopez loses his post.
“He has in effect threatened to torch the very house that sheltered him all these years,” the Lopez majority said.
The group added that even the Lopez branch associated with Piki Lopez, which is said to own 29 percent of the Lopez group, could lose billions under such arrangements.
The majority said companies placed in default may be forced to immediately settle loans or pay higher penalty rates, potentially hurting operations and future borrowing capacity.
The latest statement adds to the escalating feud within the Lopez clan, which erupted after the majority bloc questioned a series of transactions involving First Gen and Enrique Razon Jr.’s Prime Infrastructure Capital Inc.
The majority had earlier claimed it was neither consulted nor informed about the investments and related credit facilities.
Previously disclosed provisions allegedly allowed Prime Infra to force the buyback of First Gen’s stake in certain projects at a 25-percent discount if management control changes during construction periods and up to one year after commercial operations.
The Lopez majority earlier estimated that the provisions could expose First Gen to losses of roughly P24 billion tied to its gas and hydropower investments with Prime Infra.
The family dispute has since spilled into courtrooms and boardrooms, with the majority bloc seeking to remove Piki Lopez as president of Lopez Inc., while also raising governance concerns over the transactions.
Also on Wednesday, First Gen Corp. said it recorded weaker earnings in the first quarter, mainly dragged by its reduced stake in natural gas assets following a P50-billion deal with Prime Infra.
The renewable energy producer said its net income attributable to the equity holders of the parent company had dropped by 24 percent to P3.6 billion from P4.8 billion a year ago.
After unloading the 60-percent stake to Prime Infra last year, First Gen only recognized its 40 percent share in gas-related profit.
Another factor that weighed down on its bottom line was the weak performance of Fresh River Lakes Corp. (FRLC), which operates the 165-megawatt Casecnan hydroelectric power plant.
FRLC swung to a net loss of P277.3 million during the January to March period from a profit of P241.8 million last year due to lower power generation.
But these declines were partially offset by the strong operations of Energy Development Corp. (EDC), with the latter’s net income contribution, excluding hydro, jumping by 9.6 percent to P1.31 billion in the first quarter.
EDC’s portfolio includes geothermal, solar, wind and hydro assets.
“The strong 1st quarter 2026 performance of the geothermal portfolio was largely driven by the drilling program launched in 2024, our newly operating battery storage projects, and better-than-expected contracted market prices,” said First Gen president and COO Francis Giles Puno.
“We envisage to carry this momentum into the rest of the year as more wells are activated and as we continue to see contributions from EDC’s new growth projects,” he added.
