First Gen profits surge on hydro boost

Driven by higher hydroelectric output, Lopez Group-led First Gen Corp. (FGEN) saw recurring net income rise 8 percent to P15.2 billion in 2025, up from P13.9 billion in 2024,

Stronger water levels at its hydro plants offset weaker earnings from Energy Development Corp.’s (EDC) geothermal and wind portfolio, as lower Wholesale Electricity Spot Market (WESM) prices and maintenance costs weighed on results.

The company said in a Wednesday report that it generated P52.1 billion in revenues, up 6 percent from P48.9 billion in 2024, driven by higher electricity sales. 

EDC’s geothermal, wind, and solar assets accounted for 87 percent of total consolidated revenues, while hydro plants contributed 11 percent. The remaining 2 percent came from affiliates and the parent company.

“The previous year brought about a fundamental change in First Gen as we decided to sell down our controlling stake in the gas assets. We decided to strategically pivot into our renewable energy investments,” FGEN President and COO Francis Giles B. Puno said.

“2026 will be the year EDC’s investments in its drilling program bear significant fruit, while the recently announced partnership with Prime Infra for the 600 megawatts (MW) Wawa and 1400 MW Pakil Pumped Storage Hydro Projects marks our debut as greenfield hydro developers,” he added. 

FGEN sold a 60 percent stake in its natural gas business to Prime Infrastructure Capital, Inc. in November 2025 to deconsolidate its gas assets.

The transaction covers the 1,000 MW Santa Rita, 500 MW San Lorenzo, 420 MW San Gabriel, and 97 MW Avion power plants, the proposed 1,200 MW Santa Maria plant, and the Interim Offshore LNG Terminal.

Valued at P50 billion, the deal leaves FGEN with a 40 percent stake, which contributed P700 million in equity earnings.

Net income from discontinued operations prior to the sale reached P11.5 billion, up 21 percent from 2024, while the transaction generated a gain of P9.2 billion.

Meanwhile, EDC's recurring income, excluding hydro, declined 31 percent to P3.0 billion from P4.3 billion in 2024.

Higher output from the Bacman and Palinpinon geothermal plants was offset by lower sales volumes in Leyte and Mindanao due to maintenance and well workovers.

Weaker spot market prices and higher interest expenses from drilling and expansion projects also weighed on results.

EDC completed 77 MW of geothermal capacity and 40 megawatt-hour of battery and energy storage projects in 2025, with an additional 6 MW of geothermal capacity set for commissioning in 2026.

The hydro platform stood out, contributing P1.9 billion to recurring earnings, up 73 percent from P1.1 billion in 2024.

The 132 MW Pantabangan-Masiway plants generated P949 million, sharply higher than P180 million a year earlier, driven by higher starting water levels, increased irrigation, and improved contract prices.