FIRST Gen Corp. on Wednesday said that first-quarter attributable net income had fallen as it recognized the impact of a gas asset sale to Prime Infrastructure Capital Inc. (Prime Infra).
It reported a 24-percent drop to P3.6 billion from P4.8 billion a year earlier and said “the current period only reports First Gen’s 40-percent share of net income in the operating gas plants” and a 20-percent stake in the interim Offshore LNG Terminal.
First Gen, a unit of Lopez Holdings Corp., sold a 60-percent stake in its gas portfolio to Prime Infra last November.
First-quarter results were also affected by lower contributions from unit Fresh River Lakes Corp. the company said.
Excluding the gas earnings, First Gen said geothermal arm Energy Development Corp. (EDC) boosted revenues on greater volumes sold, with total electricity sales in the period rising to P15.3 billion from P11.604 billion, enhanced by higher average selling prices.
President and COO Francis Giles Puno said he was “pleased to see the fruits of our new partnership with Prime Infra as the gas plants are performing better than expected.”
He noted that the Santa Rita power purchase agreement had been extended until June and that the competitiveness of the natural gas plants was “enhanced as they benefit from Indigenous Malampaya gas combined liquefied natural gas when necessary.”
“Moving forward, we continue to also make our investments in pumped hydro and solar projects.”
Revenues excluding hydro rose to P13.5 billion from P10 billion. Hydro alone delivered sales of P1.62 billion, up from around P1.5 billion a year ago.
Revenues from other subsidiaries climbed to P234.50 million from P69.1 million, lifted by additional revenues from Pi Energy Inc., which the company acquired in May 2025.
As this developed, a majority faction of the Lopez family raised concerns that key subsidiaries could face default risks if Federico “Piki” Lopez were to be removed as chief executive of First Gen, citing financing provisions they said were embedded in group-level transactions.
In a statement, the Lopez majority said subsidiaries — including EDC and First Balfour Inc. — may be affected by loan and credit arrangements tied to a P25-billion standby letter of credit from BDO Unibank Inc.
They said the provisions could trigger default, accelerated repayment, or penalty rates depending on changes in First Gen’s leadership.
Led by Piki’s cousin Eugenio “Gabby” Lopez, the group described the arrangements as a “third poison pill” and warned that a Lopez family branch holding a 29-percent stake in the group could face significant financial losses under the structure.
“He (Piki) has in effect threatened to torch the very house that sheltered him all these years,” the statement said.
As of press time, First Gen and its subsidiaries had yet to issue a response to the faction’s allegations.
First Gen shares on Wednesday slipped P0.02, or 0.12 percent, to P16.16 per share.
