First Gen earnings rise 8% on higher hydropower output

LOPEZ-LED power producer First Gen Corp. reported an 8% increase in its bottom line in 2025, supported by higher electricity sales driven by stronger hydropower output.

In a statement on Wednesday, the company said it posted attributable recurring net income of $264 million in 2025, up from $245 million a year earlier.

First Gen said revenues rose 6% to $906 million, driven by higher energy sales volumes, although its full-year report has yet to be released.

During the period, the group’s geothermal, wind, and solar portfolio under subsidiary Energy Development Corp. (EDC) accounted for 87% of total revenues, while hydroelectric plants contributed 11%. The remaining 2% came from affiliates and the parent company.

First Gen’s hydro platform posted a 73% increase in earnings to $19 million, supported by a fivefold rise in contributions from the 132-megawatt (MW) Pantabangan-Masiway power plant.

The company said higher starting water elevation at the facility allowed it to generate and sell more electricity during the year.

Stronger hydro performance helped offset a 31% decline in EDC’s earnings to $75 million.

While the Bacman and Palinpinon geothermal plants produced more kilowatt-hours, lower gross sales volumes in Leyte and Mindanao partly offset the gains due to well workovers and maintenance activities.

“Aside from a reduction in spot market prices, EDC also had higher interest expenses from more debt following the execution of its drilling operation program and project expansions,” the company said.

Despite the decline in earnings, EDC completed 77 MW of geothermal capacity and 40 megawatt-hours (MWh) of battery and energy storage projects, with an additional 6 MW of geothermal capacity set for commissioning this year.

Meanwhile, First Gen reported $11 million in income from its remaining 40% stake in its gas assets starting November 2025.

The company earlier sold a 60% equity stake in its natural gas business to Prime Infrastructure Capital, Inc. for P50 billion in late 2025.

For the January-to-October period prior to the sale, the gas business recorded $200 million as discontinued operations.

“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 B. Puno said. “We decided to strategically pivot into our renewable energy investments.”

Mr. Puno said the company is preparing for new developments this year, with EDC’s drilling program expected to deliver results and planned investments in 2,000-MW hydropower projects marking its entry into greenfield development.

Shares in First Gen fell by 0.24% on Wednesday to close at P16.96 each. — Sheldeen Joy Talavera