First Gen Corp. of the Lopez Group on Friday reported a 12-percent decrease in attributable recurring net income for 2024 to $245 million (P14 billion) from $277 million (P15.4 billion) in 2023.
First Gen said in a statement its geothermal portfolio, through Energy Development Corp. (EDC), reported a combined decline in revenue and an increase in cash operating expenses as it focused on its drilling operation program in 2024.
The parent also incurred higher interest expenses following its availment of a P20-billion loan for the purchase of the 165-megawatt Casecnan hydroelectric power plant.
It said higher profits from the natural gas business and the newly-purchased Casecnan plant partially offset the declines.
“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. On the gas side, we will be receiving our seventh LNG [liquefied natural gas] cargo since the start of our terminal’s operations in the second half of 2023,” First Gen president and chief operating officer Francis Giles Puno said.
“We expect LNG supply deliveries in April and May 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. Meanwhile, we are also focused on the benefits of completing our geothermal drilling campaign and commissioning of our growth project. This will provide 24/7 baseload renewable energy electricity to our growing customer base,” Puno said.
The company generated $2.408 billion (P137.3 billion) in revenues in 2024, or 3 percent lower than $2.475 billion (P137.7 billion) in 2023.
The natural gas portfolio accounted for 65 percent of First Gen’s total consolidated revenues, while 32 percent came from EDC’s geothermal, wind and solar plants and the balance from the hydro business unit.
The natural gas business unit reported a 12-percent increase in recurring earnings in 2024 to $187 million (P10.7 billion) from $166 million (P9.2 billion) in 2023.
Both 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.
The Santa Rita plant fully paid off its outstanding long-term debt in May 2024.
First Gen said its LNG terminal had a higher recurring income in 2024 due to the terminal fees billed to the natural gas plants.