First Gen Corporation reported a 10% decrease in attributable recurring net income for the first semester of 2024 at $150 million (P8.4 billion) in comparison to $167 million (P9.2 billion) in 2023.

The company generated $1,278 million (P72.1 billion) in revenues in the first half of 2024, a 0.7% decrease of $8.5 million (P0.5 billion) from $1,287 million (P71.1 billion) in 2023. The lower revenues are a result of lower volumes of electricity sold during the first six months of the year across all platforms except for the hydro platform, due to the additional sales volume from the Casecnan Hydroelectric Power Plant following its turnover in February 2024. The natural gas portfolio accounted for 67% of First Gen’s total consolidated revenues, while 30% came from Energy Development Corporation’s (EDC) geothermal, wind and solar plants. The balance comes from the company’s hydro business unit.

The natural gas business unit reported a 26% increase in recurring earnings for the first half of 2024 to $115 million (P6.5 billion) from $91 million (P5.0 billion) in 1H23. The San Gabriel Power Plant, Santa Rita Power Plant and San Lorenzo Power Plant delivered higher operating income due to savings in operating expenses, and high spot market prices in the case of San Gabriel. In addition, FGEN LNG Corporation generated commissioning revenues from its pre-commercial operations and terminal fees, though still uncollected to date. Only Avion Power Plant had lower net income due to lower kilowatt-hour sales and higher operating expenses.

EDC’s recurring earnings (ex-hydro) at $44 million (P2.5 billion) for the first six months of 2024 were 42% lower than its recurring income of $77 million (P4.2 billion) in 2023.

The hydro platform’s contribution to First Gen’s recurring earnings was at $5 million (P254 million) for 1H24. The takeover of Casecnan Plant in late February 2024 resulted in $1 million (P50 million) of recurring net income for its four months of operations in the first semester.

This offset the lower recurring income of the PantabanganMasiway power plants of $4 million (P219 million) from $5 million (P286 million) last year.

“Though First Gen started the year slow with the expiry of San Gabriel’s contract with Meralco, it is making some headway in recovery through WESM [Wholesale Electricity Spot Market] sales. The natural gas business unit also delivered higher net income via cost reduction. It cannot be denied that our new LNG terminal was able to offer gas supply to our power plants at a time when the grid needed it the most. All of our natural gas plants were operating and providing vital power during the summer months when both yellow and red alerts were occurring. EDC likewise continues to produce 24/7 renewable energy and is currently working to reinforce its steam supply to ensure that it produces even more clean power with the completion of 83 megawatts of new geothermal plants by yearend,” First Gen president and COO Giles Puno said.