First Gen posts 4% profit rise

2023 was a positive year for First Gen as EDC achieved its highest earnings to date, while FGEN LNG started to commission

First Gen Corp., a renewable energy company controlled by the Lopez Group, reported a moderate increase in its 2023 profits, primarily driven by earnings from its geothermal portfolio, managed by its subsidiary, Energy Development Corp. or EDC.

The company disclosed on Thursday that attributable recurring net income last year grew by 4 percent to P15.4 billion from P14.3 billion in the previous year.

“2023 was a positive year for First Gen as EDC achieved its highest earnings to date, while FGEN LNG started to commission. The company was likewise declared the highest bidder for the 165-megwatt or MW Casecnan Hydroelectric Power Plant,” First Gen president and COO Francis Giles B. Puno stated.

“This year, these developments should translate to additions to First Gen’s earnings as the LNG Terminal reaches commercial operations and the effectivity of the Terminal Lease Agreement with Gas Aggregator Philippines Inc. happens. Casecnan will likewise be a positive addition to the bottom line from day one of its turnover,” he added.

P6.6-B earnings

Based on the First Gen report, EDC’s recurring earnings at P6.6 billion in 2023 were 24 percent higher than P5.2 billion in 2022.

The geothermal power plants under EDC enjoyed higher sales and operating income as they benefited from an increase in electricity prices.

Furthermore, EDC had fewer purchases of replacement power due to lower contracted volumes from the expiry of the Unified Leyte Power Purchase Agreement in July 2022.

The 150-MW Burgos Wind Project likewise benefited from an improved wind regime in 2023.

The hydro platform’s contribution to First Gen’s recurring earnings was at P212 million for 2023, a 23 percent decline from its 2022 recurring income of P267 million.