Lopez-led First Gen Corp. (FGen) reported that its first-quarter net income declined by four percent due to lower geothermal output, market price movements, and a lapsed power deal.

In a disclosure to the Philippine Stock Exchange (PSE) on Tuesday, May 6, FGen said its recurring net income during the first three months of 2025 went down to $77 million (or ₱4.49 billion), compared to $81 billion (or ₱4.52 billion) in the first quarter of last year.

According to FGen, its subsidiary Energy Development Corp. (EDC) posted lower revenues due to reduced generation volumes from plant maintenance, weaker prices in the Wholesale Electricity Spot Market (WESM), and the impact of newly incurred debt.

“First NatGas Power Corp., the owner of the 420-megawatt (MW) San Gabriel natural gas-fired power plant likewise continued to experience a drop in revenues as its power supply agreement (PSA) with Meralco [Manila Electric Co.] expired last February 2024,” it stated.

The firm’s revenues during the first three months also declined by two percent year-on-year to $13 million (₱500 million) due to lower electricity sales across its natural gas and geothermal platforms.

“In contrast, the hydroelectric power plants had a better start in 2025 as the rains from the previous year enabled higher power production,” FGen added.

Meanwhile, its natural gas power plants saw a seven-percent jump in recurring earnings to $46 million (or ₱2.7 billion) in the first quarter of this year.

This increase was driven by higher earnings performance from the 1,000-MW Santa Rita power plant, 500-MW San Lorenzo power plant, and 97-MW Avion power plant.

San Gabriel plant, on the other hand, had lower earnings from its merchant sales position.

The company’s liquefied natural gas (LNG) unit, FGEN LNG, began contributing since the start of its operations in January, posting $7 million, or ₱390 million, in recurring income.

EDC’s recurring income, excluding hydropower, was also down to $20 million (approximately ₱1 billion), which is 22-percent lower than last year’s first-quarter figure of $26 million (₱1.4 billion).

“The geothermal power plants under EDC generated lower sales and operating income due to a reduction in electricity prices and electricity sold, as well higher interest expenses from greater debt following the execution of its drilling operation program and project expansions,” FGen explained.

Because of its hydropower’s performance, the company’s recurring earnings grew 37 percent, boosted by the 165-MW Casecnan power plant’s sales during the first quarter.

A higher electricity sale was also observed in the 132-MW Pantabangan-Masiway power plants (PMHC) during this period; however, sales were pulled down by lower electricity prices.

FGen President and Chief Operating Officer (COO) Francis Giles Puno expressed confidence that their operations can deliver sufficient power to meet higher consumer demand, especially during the election season.

“First Gen’s portfolio of power plants are available for dispatch as the country experiences this punishing heat. We have been hard at work in making sure that the vital resources our company provides are able to deliver, especially during these coming local elections,” he said.