First Gen Corporation reported $1,287 million (P71 billion) in revenues in the first semester of 2023, an increase of $13 million (P736 million) from $1,274 million (P66 billion) from the same period of 2022.

The slightly higher revenues were from elevated natural gas and Wholesale Electricity Spot Market prices. The natural gas portfolio accounted for 63% of First Gen’s total consolidated revenues, while 34% came from Energy Development Corporation’s (EDC) geothermal, wind and solar plants. The remaining 2% came from the company’s hydro plants.

The company reported a 30% increase in recurring net income in 1H23 to $167 million (P9 billion) in comparison to $128 million (P7 billion) in the previous year. EDC delivered higher earnings as a result of better operating income from higher electricity prices. The parent company likewise benefited from higher interest income due to high yields from its internally generated cash.

“We hope to carry over the good performance of the first half in the next six months. We are looking forward to a number of significant milestones that are expected to happen for the remainder of the year, including the commercial operations of our LNG terminal at the First Gen Clean Energy Complex, the closing and turnover of the 165-megawatt (MW) Casecnan Hydroelectric Power Plant that we purchased last May from PSALM and the start of construction of our 100-MW pump storage expansion in Lake Aya at the Pantabangan-Masiway hydroelectric plants in Nueva Ecija,” First Gen president and COO Giles Puno said.

The natural gas platform reported a slight 5% decrease in recurring earnings for the first six months of 2023 to $91 million (P5 billion) from $96 million (P5 billion) in 2022. The Santa Rita and San Lorenzo power plants earned lower net income as their depreciation costs and interest expenses rose. In contrast, the San Gabriel Power Plant and the Avion Power Plant enjoyed better recurring earnings due to the full availability of both plants for the period and lower fuel costs.

The geothermal power plants under EDC continued to enjoy higher sales and operating income as they benefited from higher electricity prices. EDC’s recurring and attributable earnings at $77 million (P4 billion) for the first half of 2023 were 106% higher than its recurring income of $37 million (P2 billion) in 2022.

The hydro platform’s contribution to First Gen’s recurring earnings was at $5 million (P278 million) for the first semester of 2023, a decline of 41% from its 2022 recurring income of $9 million (P440 million) for the same period.