First Gen Corporation reported a 9% decrease in attributable recurring net income for the first quarter of 2024 at $81 million (P4.5 billion) in comparison to $89 million (P4.9 billion) for the same quarter in 2023.

Energy Development Corporation’s (EDC) geothermal portfolio produced lower recurring net income versus the same period last year mainly from the combined decline of its revenues due to lower power prices and an increase in its operating expenses. First Natgas Power Corporation, the owner of the San Gabriel natural gas-fired power plant, likewise suffered from a drop in revenues as its power supply agreement with Meralco expired last February.

First Gen generated $596 million (P33.3 billion) in revenues in the first 90 days of 2024, a 9% decrease of $56 million (P2.6 billion) from $652 million (P36.0 billion) in 2023. The lower revenues are a result of lower volumes of electricity sold during the quarter across all platforms, save for the hydro platform, due to the addition of the 165-megawatt Casecnan Power Plant to the First Gen portfolio. The natural gas portfolio accounted for 65% of First Gen’s total consolidated revenues, while 31% came from EDC’s geothermal, wind and solar plants. The balance comes from the company’s hydro plants and First Gen Energy Solutions, its retail electricity supplier.

The natural gas power plants reported a slight 4% decrease in recurring earnings for the first quarter of 2024 to $43 million (P2.4 billion) from $45 million (P2.5 billion) in 1Q23. FGEN LNG Corporation, which generated commissioning revenues from its pre-commercial operations, generated a recurring net income of $6 million in the first quarter.

EDC’s recurring earnings (ex hydro) at $26 million (P1.4 billion) for the first quarter of 2024 were 33% lower than its recurring income of $38 million (P2.1 billion) in 2023. The geothermal power plants generated lower sales and operating income due to a reduction in electricity prices and electricity sold.

The hydro platform’s contribution to First Gen’s recurring earnings was at $8 million (P435 million) for 1Q24, a 12% uptick from its 2023 first quarter recurring income of $7 million (P382 million). The takeover of Casecnan resulted in $2 million (P93 million) in recurring net income for its one month of operations in the first quarter.

“As we expected, First Gen started the year slow with the expiration of San Gabriel’s contract with Meralco. Prices in the market were also generally lower with adequate supply available in 1Q24. This was cushioned by our takeover of Casecnan last February. San Gabriel likewise went on a major maintenance outage as soon as its contract with Meralco expired in order to be ready for the current extreme weather condition that’s amplifying the need for more power. San Gabriel is currently supplying crucial capacity to the grid after coming back online on April 6,” First Gen president and COO Giles Puno said.