Q2 Income Rises Despite Lower Revenues
Lopez-led First Gen Corp. has reported an increase in its attributable net income for the second quarter, reaching $79.21 million, a rise of 5.2%. This growth is a notable achievement given that the company’s revenues from energy sales actually declined by 7.6% to $629.98 million during the same period. The key driver behind the improved bottom line was a significant and effective reduction in costs. The costs of sale of electricity decreased by 8.5% to $440.89 million, and general and administrative expenses were also lowered by 1.2%. This success in cost management also extended to the first half of the year, where the company’s attributable net income climbed by a similar 4.8% to $161.5 million, demonstrating a consistent ability to maintain profitability despite a decline in overall revenues.
Mixed Performance Across Energy Platforms
The company’s performance was a mix of successes and challenges across its various energy platforms. The natural gas platform, which contributes the majority of First Gen’s revenues, saw its topline decline by 6.6%. This was primarily due to a drop in revenues from the San Gabriel plant following the expiration of its supply contract with Manila Electric Co., a factor only partially offset by higher revenues from the Santa Rita and San Lorenzo plants. Conversely, the geothermal, solar, and wind (GSW) portfolio also registered a decline of 6.1%, weighed down by lower average selling prices. The standout performer was the hydro business, which saw its revenues surge by an impressive 69.6% to $50.1 million. This was driven by higher starting water elevation and increased irrigation diversion requirements, which allowed the company to sell more electricity to the spot market.
Navigating Challenging Market Conditions
First Gen President and Chief Operating Officer Francis Giles B. Puno described the company’s steady performance in the first half of 2025 as a significant “achievement,” particularly because the industry as a whole has been facing challenging conditions. Puno acknowledged that the power sector was affected by a softer increase in power demand and a decline in electricity prices. Looking ahead, he expressed that the company foresees continued “challenging market conditions” as the local economy has not been performing as strongly as anticipated for the year. This forward-looking perspective underscores the importance of the company’s efficient operations and diverse energy portfolio. Currently, First Gen has a total combined capacity of 3,675 megawatts from its plants, which run on a mix of geothermal, wind, hydropower, solar energy, and natural gas.
