First Gen’s recurring net income down 12% in 2024

Blame it on lower revenues coupled with higher expenses.

The Philippines’ First Gen Corporation has reported an attributable recurring net income of $245m in 2024, down 12% from the same period last year.

In a bourse filing, the company said its geothermal portfolio, through Energy Development Corporation (EDC), reported a combined decline in revenue and an increase in cash operating expenses as it focused on its drilling operation programme.

The parent company  likewise incurred higher interest expenses following a loan to purchase the 165 megawatt (MW) Casecnan Hydroelectric Power Plant (Casecnan). Meanwhile, higher profits from the natural gas business and the newly-purchased Casecnan partially offset the declines.

First Gen revenue for last year was also 3% down to reach $2.41b. The natural gas portfolio accounted for 65% of the total consolidated revenues, whilst 32% came from EDC’s geothermal, wind, and solar plants. The balance comes from the hydro business unit.

“First Gen is forging ahead on many fronts to crystallize the uniqueness and value of our clean and renewable portfolio. We are committed to find solutions to help address the country’s critical issue of energy security,” First Gen President and COO Francis Giles Puno said.

The executive said First Gen is set to receive its seventh liquefied natural gas cargo since the start of its terminal’s operations in the second half of 2023. Deliveries in April and May are expected to address the increased electricity demand during the hot summer months.

“Our gas-fired plants should benefit from the newly-enacted Natural Gas Law, but we are reviewing our options for the 1,000 MW Santa Rita power purchase agreement which expires in August,” he said.

First Gen is also completing its geothermal drilling campaign and the commissioning of its growth project.