Philippines’ First Gen net income drops 13% in H1

This is despite a 21% growth in revenue. 

Philippine-based renewable electricity firm First Gen Corporation reported its recurring net income declined 13% to $128m in the first half of the year. 

This is down from $148m in 2021 after its natural gas and geothermal business’ operating income dropped. This is also despite a 21% revenue growth to $1/27b, driven by the elevated fuel and wholesale electricity spot market prices. 

Natural gas accounted for 65% of First Gen’s total consolidated revenues, whilst geothermal, wind, and solar plants made up 31%. The remaining 4% were from its hydro plants.

“First Gen’s first half earnings were affected by fuel availability issues that specifically affected our natural gas, geothermal, and wind plants. We are at the mercy of nature to give us good wind conditions as was the case last year, but it unfortunately was the opposite this year,” First Gen President and COO Francis Giles B. Puno said.

“Our geothermal system was affected by Typhoon Odette in early 2022 and is currently catching up on maintenance activities (as was planned for this year). As for the natural gas fleet, it was weighed down by gas interruptions at the Malampaya field that required us to import more costly liquid fuel.”

Read more: First Gen income slips to $78m in Q1

Puno added the company saw fewer constraints in gas this June, leading to improved dispatch. This should be eased further by the commercial operations of its LNG terminal expected next year.