2024 starts slow for First Gen

MANILA, Philippines — Lower electricity prices, coupled with higher expenses and the end of a key supply deal, dragged down the earnings of Lopez-led First Gen Corp. by 11.7 percent to $78.8 million in the first quarter.

First Gen president and COO Francis Giles Puno said on Wednesday the firm “started the year slow”—as expected—as a power supply agreement with power distributor Manila Electric Co. had lapsed.

Three-month revenues tumbled by 9 percent to $596 million.

“Prices in the market were also generally lower with adequate supply available in [the first quarter]. This was cushioned by our takeover of Casecnan [power plant] last February,” he explained.

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Geothermal plants under Energy Development Corp. (EDC) suffered from lower sales and income because of a reduction in electricity prices and sales.

As EDC also incurred higher operating expenses, its recurring earnings slumped by 33 percent to $26 million.

Its natural gas business, First Natgas Power Corp., reported a 4-percent drop in earnings to $43 million.

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Two other power plants, Avion and Santa Rita, delivered higher operating income, driven by higher fees generated by Santa Rita as capacity surged. On the other hand, Avion incurred lower fuel costs.

The liquefied natural gas platform earned a recurring net income of $6 million as it started pre-commercial operations.

Only the hydro platform chalked a 12-percent gain in recurring earnings to $8 million after the takeover of Casecnan power plant in Nueva Ecija.