First Gen Integrated Report 2019

About the Company

Why First Gen


First Gen owns and operates 30 power plants across Luzon, Visayas, and Mindanao with 3,492 megawatts (MW) of installed capacity, powering 21.0% of the Philippines’ gross generation in 2019. The Company has a strong track record in developing, financing, building, bidding for, and operating power generation projects that have made First Gen into a leading Independent Power Producer (IPP) in the Philippines. 

First Gen has the largest portfolio of power plants that use clean, renewable, and indigenous fuels such as steam, water, wind, solar, and natural gas. The Company’s 65 percent-controlled Energy Development Corporation (EDC) is the largest vertically-integrated geothermal company in the world. The Company’s diversified and flexible portfolio of assets makes it well-positioned to address the growing demands of intermittent sources of energy.

In line with its parent company’s mission of forging pathways towards a decarbonized and regenerative future, First Gen will continue to strive to deliver resilient and compelling energy solutions that will promote energy productivity, allowing customers to do more with less energy while simultaneously lowering their carbon footprint.

Geothermal 12 1,179
Solar 10 12
Wind 1 150
Hydro 3 134
Gas 4 2,017
Total 30 3,492

Robust Cash Flow and Earnings

The Company has an established track record of developing and operating projects that deliver robust and stable cash flow. From its earnings before interest, taxes, depreciation, and amortization (EBITDA) of USD 324.9 million in 2006 – the year the Company made its debut in the Philippine Stock Exchange, the Company has since grown its EBITDA to USD 767.8 million in 2019, while the Company’s attributable net income has grown steadily from USD 91.8 million in 2006 to USD 296.2 million in 2019.

Natural Gas Pioneer

First Gen owns and operates four out of the country’s five natural gas-fired power plants with a combined installed capacity of 2,017 MW, making it the largest offtaker for natural gas and producer of natural gas-fired power in the country. In the late 1990’s, First Gen initially developed the 1,000-MW Santa Rita and 500-MW San Lorenzo combined cycle power plants. These two power plants made the Malampaya Project, the country’s largest foreign investment to-date, possible. More than a decade later, First Gen built two more natural gas-fired power plants— (i) the 97-MW Avion peaking power plant, which is currently the only one in the country that utilizes aero-derivative technology; and (ii) the 420-MW San Gabriel flex power plant, which is the most efficient natural gas-fired power plant in Southeast Asia at that time. All four plants are located in the First Gen Clean Energy Complex (FGCEC) in Batangas City.

First Gen believes that natural gas plays an important role in the transition to decarbonization because its flexibility and reliability make it the perfect complement to intermittent renewable energy (RE) sources.

Global Expert in Geothermal Power

In 2007, First Gen, through its subsidiary Red Vulcan Holdings Corporation, won the bid to acquire a 40.0 percent economic stake (60.0 percent voting stake) in the Philippine National Oil Company-Energy Development Corporation (PNOC-EDC), which was later renamed Energy Development Corporation (EDC). EDC is a pioneer in the geothermal energy industry with over four decades of proven business viability, where it has developed some of the world’s pioneering and most complex steam fields. EDC is primarily engaged in the business of exploring, developing, operating, and utilizing geothermal energy and other indigenous RE sources for electricity generation.

Today, EDC is a globally-renowned geothermal company operating 12 geothermal power plants in Bicol, Negros Oriental, West Leyte, and North Cotabato. The various geothermal plants have a combined installed capacity of 1,179.3 MW, making EDC the largest vertically-integrated geothermal power producer in the world. It has also branched out into developing and operating other renewable sources of energy.

"The various geothermal plants have a combined installed capacity of 1,179.3 MW, making EDC the largest vertically-integrated geothermal power producer in the world."

A Strong Majority Shareholder

First Gen’s majority shareholder, First Philippine Holdings Corporation (FPH), is a 59-year old Philippine corporation that is among the oldest and largest conglomerates in the Philippines. FPH has investments in vital industries that support the country‘s economic development such as power generation (through First Gen) and distribution, through its 3.9 percent effective ownership interest in Meralco. It also has substantial investments in Rockwell Land Corporation, a leading residential and commercial property developer in the country, and First Philippine Industrial Park, one of the country’s major industrial park developers that houses world-class companies. The conglomerate likewise owns and operates subsidiaries that are involved in manufacturing, as well as construction and engineering services. Moreover, FPH is affiliated with ABS-CBN, the country’s leading information and entertainment multimedia conglomerate.

First Gen and its affiliates continue to work together to realize synergies and create even more value for the Lopez Group and its shareholders.

"First Gen and its affiliates continue to work together to realize synergies and create even more value for the Lopez Group and its shareholders."

Established Relationships with World-Class Partners

First Gen has a strategic partnership with two of the world’s largest infrastructure investors: Macquarie Infrastructure and Real Assets (MIRA), and Arran Investment Pte Ltd (Arran) an affiliate of GIC Pte Ltd (GIC). The consortium has a USD 1.3 billion investment in EDC. The partnership is an affirmation of confidence in EDC’s renewable energy platform and in the Philippine power industry.

Through the development, construction, and operation of its portfolio of power plants, the Company has benefited from strong relationships with its world class project partners, such as Siemens AG, Shell, Vestas, and Andritz, among others.

We look forward to forging more partnerships to fulfill our social, ethical, environmental, and economic responsibilities.