Our overarching goal is to create long-term value for our shareholders, our employees and the many communities we serve to deliver business growth that yields positive impact for generations to come.
Francis Giles B. Puno
President and Chief Operating Officer
To our valued shareholders:
I am pleased to share the progress we have made at First Philippine Holdings (FPH) in 2024, a year that saw us simultaneously make significant progress on our business goals, demonstrate resilience in the face of increasing challenges, while remaining faithful to our mission of forging collaborative pathways towards a decarbonized and regenerative future.
Our steadfastness to our mission is especially critical at a time when businesses should, more than ever, be a force for good in solving the world’s greatest challenges.
Our Changed World
The World Meteorological Organization reported an increase of 1.55 degrees Celsius in the global average surface temperature in 2024, the first calendar year to exceed the 1.5 degree threshold target after the pre-industrial era. We have seen heat records shattered year over year, marking the last ten years as the hottest on record. Samantha Burgess, Strategic Climate Lead of respected climate watchdog Copernicus Climate Service, says that these “may have been the hottest years in the last 125,000 years.” We are witnessing how this climate crisis manifests itself in many different devastating forms, all equally disruptive.
Closer to home, it was a year of records, and not in a good way. We saw the Philippines’ heat index reach a record 55 degrees. We experienced ‘once-in-a-century’ flooding several times last year, with a record 471mm of rainfall in Metro Manila brought about by Super Typhoon Carina, followed by record rainfall across the Philippines of 528mm from Severe Tropical Storm Kristine only a few months after. At the end of the El Nino phenomenon in 2024, the Department Agriculture reported that total damage to agriculture reached PHP15.3 billion, affecting 15 regions nationwide. All these, at a time when numerous scientific reports now show that we have breached six of the nine planetary boundaries which define ‘safe space’ for mankind. This is especially alarming for us as we have the dubious distinction of consistently ranking #1 among 193 countries as most vulnerable to risk, according to the 2024 World Risk Report.
Today, we find ourselves closer than ever to the dreaded tipping point of 2.0 degrees Celsius, where the consequences make all of what we are encountering today pale in comparison. There is still hope, but our current situation now requires massive innovation and adaptation efforts to remain on track to navigate the challenges of a climate-changed world.
Our Commitment to Our Mission, and Our Way Forward
FPH’s mission is clearer than ever. We need to position, organize and execute our diverse business platforms to contribute towards a more resilient and sustainable future: in energy, we strive to play a leadership role in decarbonization by ensuring a cleaner and greener energy future; in property, we elevate industries, communities, and the environment by nurturing well-tempered and creative spaces; in construction, we will build resilient, high-quality infrastructure to advance national development; and in social service, we help provide elevated quality of life by providing access to affordable healthcare and education.In 2014, we embraced the ‘Powered By Good’ campaign across our business platforms. To this day, we firmly believe that it is more than just a tagline, but a truly inspired reflection of the way the men and women of FPH operate its businesses. Across our business platforms, FPH remains fully committed to making a meaningful positive impact.
The interconnectedness to our mission positively engages and motivates our entire organization: ‘Powered By Good’ is in our DNA, influencing our thoughts, actions, decisions and choices as we collectively work in pursuit of our mission of securing a decarbonized and regenerative future.
Our overarching goal is to create long-term value for our shareholders, our employees and the many communities we serve to deliver business growth that yields positive impact for generations to come.
This is how our businesses performed and contributed towards our mission in 2024:
Our Commitment to Our Mission, and Our Way Forward
With its clean and renewable portfolio, First Gen remains well-positioned to address our country’s energy security challenges and accelerate our country’s energy transition. First Gen performs a critical role in ramping up low-carbon and renewable energy capacity through natural gas, geothermal, hydro, wind and solar technologies. We are the largest producer of renewable energy today with a 30% market share primarily from baseload geothermal, and among the largest in terms of total installed generation capacity at 3,639.2 MW.Today, our efforts are focused on the following: 1) furthering the country’s decarbonization plans by pursuing further investments in renewable energy projects including 83 MW of new geothermal expansion and integrating our newly acquired 165 MW Casecnan hydro plant as part of a growing RE portfolio; 2) keeping the lights on by securing the country’s natural gas supply by utilizing the declining supply of domestic Malampaya gas supplemented by imported LNG through our now fully operational Floating Storage and Regasification Terminal; and 3) forging pathways by providing value-add solutions to a growing contestable customer base and through meaningful collaboration with other key stakeholders.
The power industry is increasingly competitive in the contestable markets we serve despite the long-delayed structural reforms prescribed by the Electric Power Industry Reform Act of 2001 which was enacted 24 years ago. Customer-friendly programs such as customer choice and open access are still awaiting implementation, resulting in most of the market demand still captured by incumbent utilities. The competitive landscape is further highlighted by: 1) the promotion of increased investments towards a broader contestable customer base, Wholesale Electricity Spot Market and Ancillary Services trading and Green Energy Auction Program; 2) the emergence of new market channels that yield new opportunities by the Retail Aggregation Program, Reserve Markets and other new ways to serve customers; and 3) the challenging Contract Terms prescribed by incumbent utilities as electricity supply needs are bid out through a Competitive Selection Process approved by the Energy Regulatory Commission.
As we grow our platforms, global forces are also shaping the power industry: 1) the climate crisis continues to march on, bringing with it high heat and volatile climate conditions; and 2) increasing energy demand, as a result of the advancing technology, such as AI and Data Centers that are increasingly energy dense.
These are the dual priorities that a power industry must tackle, made more challenging by volatile geo-political conditions around the globe. These challenges have actually led to some renewed interest in coal, which is almost entirely imported and supplies over 60% of our country’s electricity needs. Given this, our leadership in the transition to a cleaner and greener energy future is more critical than ever. The following describes how our portfolio performed in 2024:
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First Gen Natural Gas and Liquefied Natural Gas (LNG) - 2,017 MW
Despite the expiration of the 414 MW San Gabriel power supply contract with Meralco in February 2024, it still yielded good performance while operating on a full merchant basis. San Gabriel’s operational flexibility delivered much needed power supply during the hot summer months when demand increased and when other plants in the grid were unable to perform due to unplanned outages. However, San Gabriel’s financial performance as a merchant plant was negatively affected by price cap restrictions imposed by the market even during red alerts at a time when the higher prices would allow San Gabriel to recover supplemental revenue needed to cover its costs when there is less demand and the prices for power are low. For the country’s merchant market to succeed, proper incentives and compensation are clearly needed for power plants to be properly maintained and ready to deliver supply in short notice when demand for power goes up or when supply is inadequate. The imposition of price caps may lead to diminishing investment interest in new merchant plant capacities at a time when the electricity market is growing. This is worrisome.
Moving forward in 2025, First Gen will continue to look for solutions to address the market risk of San Gabriel and the up and coming expiry of the 1,000 MW Santa Rita power purchase agreement in August.
On a positive note, our pioneering LNG Terminal secured its Permit to Operate and Maintain (POM), after resolving certain commissioning and operational concerns, including repairs completed in the FSRU vessel and the supporting onshore infrastructure. First Gen’s LNG Terminal is the first to be awarded a POM by the Department of Energy. As a sign of confidence, Tokyo Gas completed their acquisition of a 20% ownership in FGen LNG in February 2025.
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First Gen Geothermal - 1,160.86 MW
First Gen subsidiary Energy Development Corporation (EDC) remains the country’s largest producer of renewable energy through its geothermal platform, accounting for an average of over 30% of the country’s RE supply. Geothermal energy has emerged as a most versatile platform due to its unique nature of being both renewable and available 24/7. In 2024, EDC pursued a challenging and massive well-drilling campaign with 19 completed wells, and another five ongoing and completed in early 2025. Over 20 additional wells will also be completed in 2025 to further enhance the steam production output for its power plants. This campaign was made possible by sourcing and deploying more rigs, from two to seven.
New geothermal projects totaling 83 MW located in its existing concessions reached substantial completion and are undergoing testing and commissioning: 28 MW Mahanagdong in Leyte; 29 MW Palayan Bayan in Albay; 20 MW Tanawon in Sorsogon; 5.6 MW Bago Binary in Northern Negros. In addition, EDC is also completing 40 MWh of Battery Storage projects in Leyte, Bacman and Negros to provide ancillary services for the grid.
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First Gen Hydroelectric - 299.4 MW
In 2024, our hydro capacity made a meaningful step-up increase to the portfolio with the formal turnover of the newly acquired 165 MW Casecnan plant located in Pantabangan. We are studying ways to improve and optimize its operations, as well as complement the nearby 132.8 MW Pantabangan plant.
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First Gen Solar and Wind - 162 MW
First Gen continued to explore potential solar and wind concessions to create a strengthened foothold in this segment. As a first step, we have put plans in place to move forward with our 50 MW Inara project in Batangas, which will be First Gen’s biggest solar asset once completed, and will start the projected steady build out of our solar portfolio.
Going forward, we will strengthen our plans to simultaneously pursue our ambitions of: 1) growing our capacity to 13 GW while strengthening our renewable energy platforms, in line with the country’s larger energy ambitions of targeting 35% of renewable energy in the mix by 2030; and 2) broadening our base of contestable customers. To do this, we are enhancing the First Gen organization and product portfolio with complementary solutions to gain the trust and privileged understanding of our customers’ expectations.
Transforming the Energy Distribution Landscape
First Philec, Inc. (FPI) continued to make significant strides in 2024, strengthening its position as the dominant distribution transformer manufacturer in the country. FPI focused on the successful production and delivery of its core distribution transformer products and expanded its product line of energy distribution solutions while simultaneously growing overseas. FPI enhanced its non-transformer products, including its new smart energy meters, transformer monitoring system, distribution line components, surge arresters, reclosers and protection panels. Many of FPI’s new products offer innovative solutions that enhance energy efficiency and real-time monitoring. FPI was also awarded a three-year supply contract by Meralco, a first of its kind, which solidifies its position as a trusted provider in the industry.
In addition to cementing its leadership position in the transformer market today, FPI aims to accelerate market initiatives and solidify its footprint in the United States. FPI now supplies transformers in 17 states across the United States.
Creating Well-Tempered Communities
In 2024, Rockwell Land continued to strengthen its market presence by pursuing developments of mixed-use urban centers outside Metro Manila to redefine modern lifestyles that also elevate neighborhood and community living. Rockwell’s growing portfolio now includes the following: Balmori Suites and Edades West in Rockwell Makati, Arton North in Quezon City, Terreno South in Batangas, Rockwell South at Carmelray, 1 Rockwell at IPI Center Cebu and Rockwell Center Bacolod commercial lots and Nara Residence lots in Bacolod. Meanwhile, new developments not only cater to high-end markets but now expand to meet the needs of mainstream markets as well, promoting equitable access to sustainable living, including the following: The Samanean at Paradise Farms in San Jose del Monte, Bulacan and The Molinillo, the first residential phase at Rockwell Center Lipa.
Looking ahead, Rockwell Land will continue to focus on business growth by strengthening its presence outside Metro Manila through the launch of exciting new developments by way of regional horizontal developments, timely project execution and handover, and expansion of its overall product portfolio.
Enabling Industrial Growth and Job Creation
First Philippine Industrial Park, Inc. (FPIP) currently covers over 600 hectares of prime industrial land and is home to over 150 world-class locators collectively providing more than 80,000 jobs for Filipinos. FPIP continues to establish its position as the preferred manufacturing investment hub in the country. 2024 brought exciting new developments as FPIP’s locator partners continue to flourish including the establishment of Dyson’s Global Development Center; the expansion of Collins Aerospace’s product line to now include aircraft seating modules; and the accelerated expansion of TE Connectivity as it ramps up production of connectivity wires in response to demand brought about by growth of data centers. In addition to building on FPIP’s recurring revenue base, these new and expansion projects contribute towards high-quality job creation and billions of dollars in annual export revenues.
FPIP continues to be faithful to its mission to not just elevate industry, but also simultaneously elevate community and the environment. FPIP’s new initiatives include the new multi-storey FPIP mall that will provide more food, shopping and lifestyle activities for the growing FPIP community, and the new River Water Treatment Facility, which will ensure high-quality water supply to FPIP’s industrial and community partners. FPIP continues to play a critical role in driving responsible industrialization through industry-leading environmental sustainability initiatives.
FPIP looks forward to expanding its manufacturing footprint through site expansion, as well as the operational expansion of key locators and the entry of new manufacturing investments, bringing about more high value-add jobs for Filipinos. Moreover, the ongoing development of new products and services will not only cater to locators but also the growing locator employee base, and also provide FPIP with additional recurring revenue streams.
Building Climate-Resilient Infrastructure
First Balfour, with its expertise in engineering and construction, plays a critical role in building infrastructure critical for national development, and simultaneously, that are essential for safeguarding communities and ecosystems. First Balfour, along with other FPH infrastructure subsidiaries T1 Rentals and Thermaprime, reported a significant recovery in 2024. Moreover, investments in water infrastructure, renewable energy, and sustainable transport projects contribute to enhancing societal resilience against future challenges. Key projects in 2024 included the energy sector projects with EDC, as well as the North-South Commuter Railway and the Polaris Data Center projects. First Balfour is also currently undertaking the engineering, procurement, and construction (EPC) works for the Balance of Plant (BOP) and Connection Assets (CA) of EDC’s three stand-alone Battery Energy System Storage (BESS) facilities co-located with EDC’s existing geothermal power plants in Sorsogon, Leyte, and Negros Oriental.
ThermaPrime, on the other hand, experienced significant growth in 2024, largely anchored on its successful deployment of five additional rigs to increase operational capacity to meet and support growing customer demand. Moreover, this growth was fueled by EDC’s ongoing 40-well drilling program, and supported by an expanded workforce of 324 personnel, which is 60% higher than in 2023.
The infrastructure group expects a strong year ahead, with First Balfour’s pipeline projects already accounting for 83% of its 2025 revenue target, alongside other key government infrastructure projects, and ThermaPrime’s continuing to take on a key role in EDC’s growth projects.
Advancing Equitable Access to Healthcare and Education
FPH addresses escalating social issues that are prevalent in the country today by providing equitable access to healthcare and education. The Asian Eye Institute (AEI) is the country’s premier eye care center in the Philippines, offering comprehensive eye care services, including advanced diagnostics and treatments, and specialized retinal care. MSA-PH, with over 40 years of experience, specializes in cardiopulmonary care and provides therapeutic, diagnostic, and home care services, as well as equipment rental. By collaborating with partner hospitals nationwide, MSA-PH strengthens the healthcare ecosystem, ensuring better access to quality medical services. First Industrial Science and Technology College (FIRST College), on the other hand, collaborates closely with industry professionals to deliver practical and innovative educational and training programs. These programs are designed to further careers in manufacturing and other industries, equipping workers with skills that meet modern demands.
ThermaPrime, on the other hand, experieAs with any start-up, the health and education space that FPH currently occupies is currently still undergoing transformation. FPH continues to strengthen these business platforms to contribute to the group’s overall business growth and fulfilment of our mission.
Our Financial Performance
For the year ended December 31, 2024, the Consolidated Revenues of the FPH group marginally increased to PHP167.1 billion from PHP165.0 billion the previous year. Consolidated Net Income stood at PHP24.7 billion, lower by PHP4.4 billion or 15 percent compared to PHP29.1 billion in 2023. This decline is primarily due to lower earnings from the FPH Group’s Power Generation segment. For this same reason, the Attributable Net Income of the FPH Group declined by PHP750 million or 5 percent, from PHP15.1 billion in 2023 to PHP14.3 billion in 2024.
The FPH Group’s Attributable Recurring Net Income (RNI) remained steady at PHP13.8 billion, reflecting the robust performance of the Group’s Energy Solutions and Real Estate segments, which effectively counterbalanced the decline in the operating results of the Power Generation segment.
As of December 31, 2024, the FPH Group’s Consolidated Assets stood at PHP526.9 billion and Consolidated Liabilities stood at PHP256.0 billion. Both increased by 12 and 13 percent respectively from previous year, primarily due to the acquisition of the Casecnan hydro plant by the Group’s Power Generation segment and the debt it incurred to partially fund the acquisition. The FPH Group ended 2024 with Consolidated Equity of PHP270.9 billion.
First Gen
First Gen’s attributable recurring net income declined by PHP1.4 billion or 9 percent from PHP15.4 billion to PHP14.0 billion. This was driven by lower earnings from its geothermal portfolio and higher interest expenses following the PHP20 billion loan that was availed to partially fund the acquisition of Casecnan.
The geothermal portfolio experienced reduced sales and higher operating expenses as EDC accelerated its drilling program. EDC also faced challenges from plant maintenance outages and lower steam availability. Despite these challenges, First Gen, through EDC, continues to invest in drilling and operational efficiencies, ensuring that the geothermal portfolio remains a core pillar in the FPH Group’s clean energy strategy.
The newly acquired Casecnan plant began contributing earnings since its turnover in February 2024. First Gen’s natural gas portfolio performed well in 2024 due to lower operating and financing expenses and higher revenues from the LNG terminal.
First Philec
FPI showed excellent financial results in 2024 with revenues of PHP4.9 billion and recurring net income of PHP1.1 billion, higher than previous year by 9% and 8%, respectively. FPI’s exemplary performance is a testament to the Energy Solutions team’s efforts to not only maintain FPI’s dominance in the country’s transformers manufacturing industry, but also in developing new products and service offerings for both the domestic and international markets.
Rockwell Land
Rockwell ended 2024 strong with revenues of PHP20.1 billion, its highest to date. The growth in real estate sales was propelled by strong sales bookings from Arton, Fordham, Mactan Residences, and Rockwell South. Strengthening its growth momentum, Rockwell launched six new projects in 2024, collectively valued at PHP10.3 billion. This stronger topline translated to an attributable recurring net income of PHP3.5 billion, another all-time high for Rockwell Land.
FPIP
FPIP’s recurring net income in 2024 grew to PHP184.6 million, higher by 4% compared to previous year, as it continues to focus on increasing its recurring earnings from leases, water, and park charges. In 2024, FPIP broke ground on a three-story mixed-use hub inside the industrial park. The new FPIP Plaza is a 15,000-square-meter space that will house various retail establishments and offices upon completion, and will open doors for more employment opportunities, adding to the over 80,000 employees working at FPIP. FPIP also broke ground on its River Water Treatment Facility Project, ensuring a sustainable and reliable water supply for its locators and customers.
First Balfour, T1 Rentals and ThermaPrime
First Balfour, T1 Rentals and ThermaPrime made significant progress in 2024, as they registered total of PHP14.3 billion, 63% higher than previous year, and recurring net income of PHP752 million, a reversal of its PHP125.7 million net loss in 2023. Their notable performance was driven by improved revenues and margins from its construction projects with EDC, as well as the North-South Commuter Railway and Globe Data Center projects, and from Thermaprime’s supply of geothermal drilling rigs and services to EDC and its logistics services to third parties. First Balfour ended 2024 with a construction order book totaling PHP29.0 billion.
AEI, MSA-PH, and First College
The Healthcare and Education Group posted a consolidated net loss of PHP114.8 million, significantly higher by PHP71.9 million from last year’s PHP42.9 million net loss. The losses are primarily due to increased operating expenses in AEI, MSA PH, and First College, partly tempered by less losses in PHMDSI, which ceased operations in April 2024.
First Balfour, T1 Rentals and ThermaPrime made significant progress in 2024, as they registered total of PHP14.3 billion, 63% higher than previous year, and recurring net income of PHP752 million, a reversal of its PHP125.7 million net loss in 2023. Their notable performance was driven by improved revenues and margins from its construction projects with EDC, as well as the North-South Commuter Railway and Globe Data Center projects, and from Thermaprime’s supply of geothermal drilling rigs and services to EDC and its logistics services to third parties. First Balfour ended 2024 with a construction order book totaling PHP29.0 billion.
Our Financial Performance
There is a phrase attributed to Sr. Irene Kraus, a Roman Catholic nun who led the Daughters of Charity organization with a network covering over 80 hospitals: ‘No margin, no mission.’ Without the necessary resources, funds in this case, missions simply do not materialize, no matter how noble the cause is. It is a reality we all acknowledge - that robust financial health and business growth across our platforms are critical to achieve our own aspirations and our mission. We do, however, have utmost confidence that our portfolio of businesses, our decades of extensive and pioneering expertise, backed by a disciplined, hardworking and talented organization, our unique set of capabilities, and the absolute clarity of our mission will pave the way for this.
As we keep our business health robust, we also remain focused on our long-term intent of providing enduring value for our stakeholders. By aligning the way we run our businesses with the world’s urgent decarbonization and regeneration initiatives, we ensure that our business growth contributes to a much larger agenda, and caters to a much wider range of beneficiaries.
2024 was indeed another challenging year, and we foresee many more challenging years ahead. Although the world remains in constant flux, we will continue to exert our utmost efforts to do well to be able to do good, creating long-term value for our stakeholders, and remaining steadfast in our commitment to our mission. Our confidence in achieving this most important balance is anchored on our businesses being truly Powered by Good.
We thank you for your unwavering encouragement, support, and trust during this most important point in our journey.
