Hydro business powers First Gen profit to P15.2 billion

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March 26, 2026 | 12:00am

MANILA, Philippines — Lopez-led First Gen Corp. delivered higher earnings last year on the back of robust hydro business, which helped offset rising costs and weaker spot market prices.

The company saw an eight-percent rise in attributable recurring income to P15.2 billion in 2025 from P13.9 billion in 2024, driven by higher hydropower output.

Strong power sales resulted in a six-percent uptick in revenues to P52.1 billion from P48.9 billion on an annual basis.

The hydro business, which accounted for 11 percent of First Gen’s topline, contributed P1.9 billion in recurring earnings, a 73-percent jump from P1.1 billion in 2024.

This cushioned the impact of lower contributions from Energy Development Corp. (EDC), which holds the group’s investments in geothermal, wind and solar.

EDC’s recurring profit declined by 31 percent to P3 billion from P4.3 billion due to lower spot market electricity prices and higher costs for steam field maintenance and workover activities.

The subsidiary comprised 87 percent of First Gen’s total consolidated revenues, while the remaining two percent came from affiliates and other businesses.

“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,” First Gen president and COO Francis Giles Puno said.

Last year, First Gen sold 60 percent of its gas business to tycoon Enrique Razon Jr.’s Prime Infrastructure Capital Inc. for P50 billion.

The deal involved four existing gas-fired facilities totaling over 2,000 megawatts and the proposed 1,200-MW Santa Maria gas plant in Batangas. First Gen retains a 40-percent interest in the assets.

This year, Puno expects EDC’s investments in its drilling program to deliver significant results.

EDC recently completed 77 MW of geothermal projects, with an additional six MW targeted for commissioning this year.

Aside from geothermal, the First Gen Group also intends to boost its hydro capacity by acquiring a 33-percent stake in Prime Infra’s 2,000-MW pumped storage hydropower projects in Laguna and Rizal.

The deal is expected to reach financial closing later this year.