First Gen Corp. reported on Wednesday an 8-percent increase in attributable recurring net income in 2025 to $264 million (P15.2 billion) from $245 million (P13.9 billion) in 2024.
The independent power producer attributed the growth to a surge in its hydro portfolio following higher water levels, but said the gains were partially offset by lower earnings from its geothermal subsidiary.
The company generated $906 million (P52.1 billion) in revenues for 2025, up 6 percent from $857 million (P48.9 billion) the previous year.
The revenue growth was led by a greater volume of electricity sold during the period. The geothermal, wind and solar portfolio under Energy Development Corp. (EDC) accounted for 87 percent of total consolidated revenues, while hydroelectric power plants contributed 11 percent.
In a fundamental shift in strategy, First Gen sold a 60-percent equity stake in its natural gas business to Prime Infrastructure Capital Inc. in November 2025 for P50 billion.
The company no longer consolidates natural gas assets such as the Santa Rita and San Lorenzo plants. Earnings prior to the sale were booked as net income from discontinued operations at $200 million (P11.5 billion), representing a 21 percent jump from 2024, with the sale resulting in a gain of $159 million (P9.2 billion).
“The previous year brought about a fundamental change in First Gen as we decided to sell down our controlling stake in the gas assets,” First Gen president and chief operating officer Francis Giles Puno said.
“We decided to strategically pivot into our renewable energy investments,” he said.
Puno said 2026 will be the year the drilling program of EDC “bears significant fruit.” He said a partnership with Prime Infra for the 600-megawatt Wawa and 1,400-megawatt Pakil pumped storage hydro projects marks the company’s debut as greenfield hydro developers.
The hydro platform contributed $33 million (P1.9 billion) to recurring earnings, a 73 percent rise from 2019 levels. Specifically, the 132-megawatt Pantabangan-Masiway power plants outperformed with $16 million (P949 million) in earnings due to higher water elevations and power supply contract prices.
However, EDC attributable recurring income, excluding hydro, fell 31 percent to $52 million (P3 billion). The decline was caused by lower Wholesale Electricity Spot Market prices and increased expenses for steamfield maintenance.
EDC also reported higher interest expenses from increased debt following its drilling program and expansions. The company has completed 77 megawatts of geothermal growth and 40 megawatt hours of battery storage.
First Gen remains the largest renewable energy producer in the Philippines with 1,764.2 megawatts of installed capacity. The company is a subsidiary of First Philippine Holdings Corp. of the Lopez family.
