Recovering from a slip in its nine-month earnings last year, Lopez-led First Gen Corp. (FGen) reported a three percent increase in its attributable net income from January to September of this year.

In a disclosure to the Philippine Stock Exchange on Tuesday, Nov. 11, FGen said its hydropower assets contributed to the rise in profit to approximately ₱12 billion this year, up from ₱11.6 billion recorded in the comparable period last year.

First Gen’s revenues for the first three quarters, however, slipped three percent to ₱3.4 billion as lower electricity sales from its natural gas plants and weaker spot market prices impacted its geothermal unit, Energy Development Corp. (EDC).

For context, revenues from the 420-megawatt (MW) San Gabriel natural gas plant decreased after its power supply deal with Manila Electric Co. (Meralco) ended in February last year.

“Even if First Gen’s 1,000 MW Santa Rita Power Plant, 500 MW San Lorenzo Power Plant, and 97 MW Avion Power Plant all reported higher recurring earnings—mostly from savings on interest expenses from lower outstanding debt—the depressed earnings from San Gabriel’s merchant sales negatively affected the portfolio,” FGen said.

While its gas business will soon finalize a majority stake sale to the Razon-led group, First Gen reported a positive performance from its hydropower facilities.

Its hydropower platform’s share expanded by 65 percent to about ₱1.3 billion from last year’s ₱793 million, driven by higher electricity sales from its 132 MW Pantabangan-Masiway power plants (PMHC).

“This was made possible by more irrigation, as well as higher power supply contract prices,” the company explained.

The hydropower segment was further bolstered by the takeover of the 165 MW Casecnan power plant last February 2024, which generated about ₱628 million in recurring income.

To recall, the Power Sector Assets and Liabilities Management Corp. (PSALM) and the National Irrigation Administration (NIA) handed over ownership of the Casecnan hydro plant to FGen’s subsidiary, Fresh River Lakes Corp. (FRLC), through a winning bid of $526 million.

Francis Giles Puno, FGen president and chief operating officer, said the company still managed to bring in optimistic results despite lower spot market prices and soft demand during the nine-month period.

“As a whole, we were happy to see First Gen’s net income steadily increase this year. This was despite industry dynamics of lower electricity prices and softer demand,” he shared.

“We also continue to negotiate with Meralco for an extension of the Santa Rita Power Purchase Agreement as the plant is critical to the country’s energy security.”