Lopez-led First Gen Corp. posted slightly higher earnings in the first half of 2026 as stronger contributions from its geothermal business offset weaker performance from its hydroelectric power portfolio.

In a disclosure filed with the Philippine Stock Exchange (PSE) on Wednesday, Aug. 12, First Gen said attributable net income stood at ₱8.7 billion, up 1.16 percent from ₱8.6 billion a year ago. The steady growth was recorded despite factoring in the sale of its 60-percent stake in its natural gas portfolio to Razon-led Prime Infrastructure Capital Inc. (Prime Infra) in November 2025.

According to the company, the period only accounts for its 40-percent share of net income in the operating natural gas plants and its 20-percent stake in the interim offshore liquefied natural gas (LNG) terminal.

First Gen generated ₱41.1 billion in overall revenues during the first six months of the year—a sharp 73-percent jump from ₱23.7 billion in the first half of 2025. The growth was driven by a higher volume of electricity sold at improved prices across its power units, specifically under its geothermal unit, Energy Development Corp. (EDC).

EDC’s attributable recurring income, excluding hydro, surged 97 percent to ₱3.8 billion, compared with ₱1.9 billion in the first half of last year. This was due to higher contracted prices and increased generation volume from better steam availability.

The geothermal, wind, and solar portfolio under EDC accounted for 73 percent of total consolidated revenues, while hydroelectric power plants contributed eight percent. The remainder came from parent company operations and other subsidiaries.

EDC’s three new battery energy storage system (BESS) projects, commissioned late last year, also began contributing fresh revenues from ancillary services.

Conversely, the company’s hydro platform posted a 48-percent decline in recurring earnings contribution to ₱433 million, down from ₱826 million last year.

While the 132-megawatt (MW) Pantabangan-Masiway complex performed well—generating ₱732 million in recurring net income on high starting dam water levels—the 165-MW Casecnan facility posted a net loss of ₱304 million due to lower water inflows and temporary interest expenses on debt that has since been prepaid.

“Pantabangan Masiway started 2026 well with high water elevation at its dam and this enabled the plants to provide the power needed during the scorching summer months,” said First Gen President Francis Giles Puno.

First Gen noted that while hydro plants benefited from peak summer demand early in the year, dry spells from El Niño are beginning to weigh on water reservoir elevations heading into the second half of the year.

“This will affect Casecnan more as its generation is normally higher from May to November. Fortunately, the strong 2026 performance of the geothermal portfolio continues as more steam is harnessed and was made possible by the drilling program launched in 2024. Our new battery projects also continue to contribute to revenue growth. Contracted and spot market prices have also been better this year,” Puno said. - Gabriell Christel Galang