Manufactured Capital is defined as the physical objects, as opposed to natural physical objects, that an organization uses to produce its goods and services. This encompasses buildings, infrastructure, and equipment, as well as assets manufactured by the organization for sale or its own use.21
The following section details the performance of our business segments under this capital, with updates on production, asset performance, and upcoming projects. For further information on our approach to managing our manufactured capital, please refer to Annex 3 of our 2020 Integrated Report available on our website.
Our Business Strategy
Power Plant Performance and Improvements
Overall Net Generation ( ▼ 15.4 percent)
Overall net generation decreased by 15.4 percent since 2023, due to a number of factors affecting different energy sources. Generation from natural gas dropped significantly due to planned maintenance, lower dispatch levels, and the expiration of the Power Supply Agreement of San Gabriel. However, the completion of testing and commissioning of natural gas facilities on regasified LNG allowed for greater flexibility in fuel sources.
Geothermal power generation saw a slight decline due to outages caused by maintenance, repairs, and safety inspections. The impact of these were minimized by various optimization activities and efforts to address maintenance and repair issues.
Hydroelectric generation by the Pantabangan-Masiway Complex and Agusan were negatively impacted by low water levels due to the El Nino phenomenon and equipment failures. However, the acquisition of the Casecnan Hydro Electric Power Plant significantly boosted overall hydroelectric generation.
Similarly, generation by wind decreased due to lower wind speeds brought about by El Nino, as well as typhoon damage. Meanwhile, solar generation decreased due to inverter failures and cloudy conditions.
Natural Gas ( ▼ 23.4 percent)
The natural gas units had a significant drop in power produced due to several factors. Santa Rita’s generation dropped due to planned major maintenance activities. Both Santa Rita and San Lorenzo’s generation also dropped due to lower dispatch levels, as the new Gas and Sale Power Agreement increased the price offered by these power plants. San Gabriel’s generation decreased due to the expiration of its Power Supply Agreement (PSA) with Meralco in February 2024.
After the PSA expiration, San Gabriel started providing its output to the Wholesale Electricity Spot Market (WESM). The unit was able to meet dispatch requirements during the periods when other power plants were conducting their planned/forced outages and when the grid experienced red alerts. San Gabriel was accredited by the National Grid Corporation of the Philippines (NGCP) to provide Ancillary Services for Regulating and Contingency Reserve, in addition to offering its capacity to the electricity spot market.
In February 2024, First Gen completed testing and commissioning its natural gas facilities on regasified LNG. This enables the Santa Rita, San Lorenzo, San Gabriel, and Avion power plants to use 100 percent regasified LNG, 100 percent Malampaya gas, or a blend of the two natural gas fuels. This achievement helps supplement the depleting supply from the Malampaya gas field. Three LNG shipments in 2024 ensured sufficient power to the grid, particularly during the critical summer months.
Geothermal ( ▼ 5.2 percent)
In 2024, the overall power generation from geothermal powerplants experienced a slight decline. This was due to outages in various units, for different reasons:
▸ The Upper Mahiao Power Plant in Leyte was shut down in October for safety risk inspections and expects to return to service in 2025;
▸ A unit in Malitbog, in Unified Leyte, went offline in July due to turbine blade damage, with repairs expected to be completed by June 2025;
▸ A Mahanagdong Pad, part of Unified Leyte, was shut down in November. It required pipe replacement with the pad and is expected to return to service by January 2025;
▸ Steam line maintenance also contributed to generation challenges of the Mahanagdong power plant;
▸ On January 11, a unit in Palinpinon tripped and required comprehensive repairs. After completing major repairs, the unit was restored to service on January 24.
▸ A unit in Palinpinon, following its preventive maintenance schedule and distributed control system upgrade from September 2023, required major repairs through the first quarter of 2024. After conducting the necessary tests to ensure compliance with industry standards, it went back online on April 21, 2024.
▸ A unit in Mindanao was put on emergency outage in August to conduct repairs due to clogged pipes. The pipes were cleared temporarily and will be fully serviced during its major preventive maintenance in the first quarter of 2025.
▸ A unit in BacMan experienced a 10-day unplanned shutdown due to an issue with its brush gear that required machining. The operations team used the shutdown period as an opportunity to do other maintenance works.
▸ The same BacMan unit also experienced lower steam supply due to a well collapse. The appropriate interventions were conducted and the drilling of a new well unit was moved to an earlier date to maintain the BacMan unit at full capacity.
Despite these operational challenges, the impact on overall generation remained manageable, aided by steam optimization activities. Various optimization activities in the geothermal plants were done throughout the year:
▸ Leyte received an uplift of 10MW in its load after a successful gas lifting activity and cut-in of the MG55D well.
▸ Additional output from well-managed wells in Mt. Apo, leading it to achieve its target of 598GWh in November.
▸ The Solenis project in Negros effectively addressed mineral scale issues in the power plant’s reinjection well. The project exceeded expectations and avoided an anticipated deration of the power plant.
Hydro ( ▼ 148.7 percent)
Towards the end of February 2024, the Casecnan Hydro Electric Power Plant (CHEPP) was officially turned over to First Gen from the government, through the Power Sector Assets and Liabilities Management Corporation (PSALM) and the National Irrigation Administration (NIA). It produced 417.1MW of power in 2024, significantly bringing up power produced from hydro sources. CHEPP is located just across the Pantabangan reservoir where the Pantabangan Hydro Electric Power Plant is located.
The Pantabangan and Masiway Hydro Electric Plants (PHEP and MHEP) produced less power in 2024 due to low water levels. The Pantabangan reservoir reached a record low water level during the first semester of the year, brought about by high water release for irrigation by NIA compounded by the El Nino phenomenon. NIA adjusted the cropping season to two seasons from October to January and February to May, instead of the former cropping season from June to October in order to minimize the impact of typhoon damage to crops. This shift changed the schedule water is released from the Pantabangan Reservoir for irrigation, and in turn affected the Pantabangan-Masiway complex’s generation for the year.
The Pantabangan-Masiway complex also experienced outages towards the end of the year, due to failure of certain parts. This resulted in the need to derate PHEP from 60MW per unit to 50MW in November, and a 12-day downtime of MHEP in December due to the unavailability of electronic parts. Solutions were developed to coordinate with suppliers of reliable equipment for PHEP, and to upgrade the asset system of MHEP.
The Agusan plant generated lower energy in 2024, and is the lowest since the plant’s acquisition in 2005. This was due to low inflow brought on by the El Nino Phenomenon, especially in the first half of the year. First Gen took this as an opportunity to conduct maintenance activities when the inflow was at its lowest.
Wind ( ▼ 24.7 percent)
The decrease in generation from wind at Burgos was primarily due to low wind speeds. Burgos experienced the lowest historical wind speeds in 2024, due to the El Nino Phenomenon.
During the last quarter of the year, Burgos Wind also experienced wind turbine outages caused by Typhoon Marce (international name Typhoon Yinxing) damaging five Wind Turbine Generators (WTGs), and a fire incident involving one WTG unit. On the other hand, the team completed 67 blades for the blade leading edge repairs just before the arrival of high winds last October 2024, as well as expediting restoration of the 5 WTGs affected by TY Marce.
The Burgos Wind site has an extreme wind management strategy, where a yaw backup system is engaged to ensure that the WTGs can effectively reposition their blades to minimize damage. Maintenance activities including typhoon preparedness measures and reviewing the design limits of the WTGs are done during the low wind season.
Solar ( ▼ 8.8 percent)
The decrease in generation of Burgos Solar was due to multiple inverter failures as well as cloudy conditions. Inverter failures were reported in March; the supplier for inverters of Burgos Wind no longer manufactured the inverter models required, but the Burgos team was able to acquire enough spare parts to restore the downed inverters in May. Burgos Solar has also initiated the procurement of upgraded inverters throughout 2024 to 2025.
Ongoing and Upcoming Projects
Liquefied Natural Gas (LNG)
Following its successful commissioning in September 2023, the Interim Offshore LNG Terminal has been fully operational throughout 2024. During the period, the terminal achieved key milestones, including the safe receipt of three LNG shipments totaling 442,379m³. The terminal also logged 130,806 man-hours with zero lost-time incidents (LTI), demonstrating First Gen’s commitment to workplace safety. In December 2024, the Department of Energy (DOE) issued the LNG terminal a Permit to Operate and Maintain, marking a regulatory milestone.
Santa Maria Gas-Fired Combined Cycle Power Plant (1,260-MW)
First Gen Ecopower Solution, Inc. is making progress on the development of the 2 x 630MW Santa Maria Gas-Fired Combined Cycle Power Plant Project (SM CCPP). The initial construction phase, which includes site preparation, is currently underway. Additionally, the company is working on permitting activities and contractor selection.
Palayan Bayan Binary Plant (29-MW)
The connection asset was completed and successfully energized on December 13, 2024. On December 17, the Balance of Plant (BOP) contractor finalized the erection of Toshiba Original Equipment Manufacturer (OEM) systems, enabling successful power reception from backfeed power. The power plant was successfully synchronized to the grid on February 7, 2025 and is now undergoing grid compliance tests.
Tanawon Geothermal Power Plant (20-MW)
The power plant was successfully synchronized to the grid on January 12, 2024 and has been generating electricity since then. Final grid compliance tests were completed in January 2025.
Mahanagdong Binary Plant (28-MW)
The key achievements of the Mahanagdong Binary Plant in 2024 were completing the electrical building structure and installing most major equipment in the second half of the year. The installation of the connection asset and transmission line structures was finalized in October 2024, alongside the full-scale installation of the fluid collection and re-injection system equipment.
Bago Binary Geothermal Plant (5.6-MW)
The plant successfully underwent a 30-day reliability run from August 14 to September 14. Other milestones of the Bago Binary Geothermal Power Plant include the start of hot commissioning on June 16, the first grid synchronization on June 26, and the completion of grid compliance tests with NGCP from August 5 to 7.
Battery Energy Storage System (BESS) Projects
The core components for the BacMan (20-MW/20-MWh), Tongonan (10-MW/10-MWh), and Southern Negros (10-MW/10-MWh) energy storage system projects have been delivered, installed and interconnected at their respective sites. These include the battery cubes themselves, inverters, and medium-voltage transformers. The supporting infrastructure, including the control room, switchyards, and high-voltage transmission lines, have also been completed. All three BESS projects achieved electro-mechanical completion in November 2024, and are presently preparing for the conduct of test and commissioning activities with the grid operator.
100- to 120-MW Aya Pumped-Storage Hydro Power Project
The Aya Pumped-Storage Hydro Power Project is scheduled for implementation in the second half of 2025. The detailed engineering design for the electromechanical works have been completed, while the design for civil and hydromechanical works is still in progress. Most of the necessary permits and endorsements have already been secured, paving the way for the next phases of development.
Manufacturing and Energy Solutions
During 2024, First Philec reached a record-high monthly production and delivery of 2,650 and 3,000 transformer units, respectively. A total of 24,469 units of transformers were produced and sold during the year. When demand spiked in the fourth quarter of 2024, production effectively met the increased requirements without needing to add resources, showcasing FPI’s operational readiness.
To support its growing production and new business lines, FPI will be optimizing its current facility while planning expansion to a new facility. There is also an option to acquire an existing facility for immediate use for new products and services.
With its growth in capacity and production, FPI is able to support 8 new local customers and 8 new overseas customers.
Manufacturing and Energy Solutions
By the end of 2024, Rockwell Land manages a total of 33 properties: 24 residential properties, four commercial properties, and five offices. During the year, Rockwell Land:
▸ The Upper Mahiao Power Plant in Leyte was shut down in October for safety risk inspections and expects to return to service in 2025;
▸ A unit in Malitbog, in Unified Leyte, went offline in July due to turbine blade damage, with repairs expected to be completed by June 2025;
For 2025, Rockwell will be launching several properties in Lian, Batangas, namely Lauan Ridges and Los Cabos.
Of its leased assets, the occupancy rates of Rockwell Land’s Retail and Office properties are respectively at 90 percent and 94 percent, maintaining steady rates for the past 3 years.
Manufacturing and Energy Solutions
FPIP manages an industrial park of over 600 hectares. In the service of its locators and community, the park’s infrastructure and facilities include:
▸ 30 leasable ready-built factories (RBF) totalling about 181,084 square meters
▸ Water extraction and distribution facilities, capable of providing approximately 30 million liters per day for its locators
▸ Centralized water treatment facilities, with a capacity to treat 20 million liters per day
▸ Transmission and distribution facilities, ensuring the supply of electricity to park locators
▸ FPIP Administration Complex and Annexes that include a Service Support Building and SanTomas Suites
▸ Service Support Building, which mainly houses the fire brigade, emergency support teams and other park support services.
▸ San Tomas Suites, FPIP’s hotel that can cater to the accommodation needs of locators, their suppliers, and the public in general
▸ Consuelo Park Residences, FPIP’s dormitory available primarily for those working inside the park. The Residences have a total of 95 units, which can house a maximum of 380 people
▸ Oasis Commercial Building, which is leased out to commercial and institutional tenants, such as a school, banks, government offices and sales / representative offices of locator suppliers
▸ Recreational facilities and spaces, which include a covered court, the Consuelo Park, and the Consuelo Park Pavilion
▸ Road management, monitoring, and maintenance facilities which include traffic facilities at the main highway, CCTVs to view the traffic conditions at Maharlika Highway, and speed cameras for the implementation of traffic regulations and the mitigation of vehicular incidents
▸ Further structures that promote mobility around the park, such as pedestrian overpasses, a pedestrian overpass interconnection at the main gate, covered walkways and waiting sheds, and dedicated bike lanes
▸ Security infrastructure, which includes two PNP detachments and an access management system in all park gates
FPIP continues to improve its infrastructure, and in 2024 completed the following:
▸ Installation of solar panels at their FUI units, adding to the solar capacity of FPIP
▸ Installation of CCTVs for traffic control
▸ Construction of a Materials Recovery Facility, allowing better segregation and diversion of waste
▸ Maintenance of water treatment facilities
▸ Continued maintenance of RBFs
FPIP has ongoing upgrades to its waste water facilities to accommodate and treat concentrated discharge from its customers. Customers have also identified the traffic within the park as a point of improvement, to which FPIP continuously collaborates and works with the Local Government Unit (LGU) for short term resolutions while identifying solutions for the long-term. The CCTV Live Feed at the FPIP Gates 2 and two are available for all locators through the locator portal so they may monitor actual traffic conditions.
FPIP is currently the preferred location of 157 world-class locators. Of its total RBF space, 77 percent was occupied in 2024. Though FPIP has been maintaining this occupancy rate for the past few years, its revenue continues to increase through contracted lease rate increases and the provision of other services to locators.
Construction and Energy Services
First Balfour
First Balfour remains active in four primary markets that present opportunities aligned with the decarbonization and regeneration mission. In 2024, it completed 16 projects, most of which were for the energy sector. A key project completed was the 28.9-MW Palayan Binary Geothermal Power Plant for EDC.
In support of First Balfour’s construction operations, they have invested in a new Ringlock Scaffolding and Formworks System alongside a portable drilling rig. These equipment can also be rented out to projects that require them. To support its manpower and administrative work, First Balfour also invested in more service vehicles for its manpower, a sewage treatment plant for its Sucat Office, and various computer equipment and software to support its growing needs for information systems and development.
T1 Rentals
T1 Rentals, the Plant and Equipment Division of First Balfour, currently maintains a fleet of:
▸ 217 heavy trucks
▸ 179 earthmovers
▸ 53 lifting equipment
▸ 182 service vehicles
▸ 20 general rental equipment (welding machines, towerlights, etc)
▸ 58 generator sets
T1 Rentals has five yards across the nation in the service of customers. These are located in Paranaque City, Metro Manila; Tanauan City, Batangas; Clark Global City, Pampanga; Mandaue City, Cebu; and Davao City, Davao del Sur.
It is also assessing the viability of using a 30 Truck Mounted Crane, a new crane type that has the same lifting capabilities as T1 Rentals’ other cranes, but with a more mobile chassis that enables it to travel long distances with its own power. This feature would eliminate the need for trailer transportation, significantly enhancing operational efficiency and the services T1 Rentals can offer to its clients.
T1 Rentals also upgraded its rental monitoring system in 2024 to digitalize and streamline operation records, greatly enhancing operational efficiency by expediting the equipment rental billing process, improving the monitoring of human and equipment resource utilization, and promoting sustainability through the reduction of paper transactions as part of the company’s digital transformation efforts. Additionally, T1 Rentals developed several internal applications to further drive digitalization and eliminate the reliance on paper-based forms and processes. These tools are part of T1 Rentals’ broader initiative to enhance operational efficiency while supporting environmentally sustainable practices.
T1 Transport
First Balfour’s Heavy Equipment and People Transport arm, T1 Transport, is building up its equipment fleet which now covers:
▸ 46 Tractor Heads
▸ 59 Trailers
▸ 3 Boom Trucks
▸ 14 Service Vehicles
▸ 6 Electric Vehicles
Notably, T1 Transport’s electric vehicles supported Cebu Pacific before the termination of its contract in November 2024; and currently supports First Philec with two units of GET COMET electric buses and three units of Chery H6 electric vans.
Thermaprime
In 2024, ThermaPrime ramped up its drilling activities, completing 17 wells using five geothermal rigs.This was in full support of EDC’s commitment to work on the geothermal wells identified in their Drilling Operations Program (DOP) for the year. This was a major rebound from the previous year when two rigs underwent recertification activities, while two other rigs (one from Texas USA and one from EDC) were acquired and prepared for the busy drilling season of the following year.
Health Services
As of 2024, the Asian Eye Institute manages three surgical centers, three satellite clinics, and one optical shop. In 2024, AEI closed down its Eyesite clinic in SM Fairview. Meanwhile, AEI is upgrading its Trinoma clinic with operating room facilities, and will be improving its Rockwell facility in 2025
Asian Eye Institute has a Technical Services Team that monitors, maintains, and calibrates its medical and surgical equipment to ensure optimal patient care. The team performs preventive maintenance and calibration regularly. In addition, AEI has a plan in place to procure new equipment to replace older models.
Summary
Power Generation
▸Overall decrease in net generation, from a combination of major maintenance activities, lower dispatch levels, and the expiration of the Power Supply Agreement of San Gabriel.
▸ Overall decrease in net generation, from a combination of major maintenance activities, lower dispatch levels, and the expiration of the Power Supply Agreement of San Gabriel.
▸ Major maintenance and repairs of nat gas plants, geothermal plants, and wind plants were completed and helped mitigate the decline of energy generation.
▸ Significant increase in electricity generation from hydro, with the Casecnan hydro power plant beginning operations.
▸ Upcoming projects in natural gas, hydro, geothermal, and battery storage are ongoing.
Manufacturing and Energy Solutions
▸ Achieved record high monthly production of transformers during the fourth quarter of 2024.
▸ Ongoing facility optimization and planned expansion of facilities to continue accommodating increase in demand and business growth.
Commercial and Residential Real Estate
▸Completed construction of four properties.
▸ Launched four new properties.
▸ Occupancy rates of 90 percent and 95 percent of retail properties and office properties, respectively
Industrial Real Estate
▸ Various facility improvements for renewable energy, waste management, water management, and traffic control.
Construction and Energy Services
▸ Completed 16 construction projects, mostly within the energy sector.
▸ Geothermal drilling operations increased the number of operational rigs from two to five, all of which were operational in 2024.
Health Services
▸ Closed down one Eyesite clinic in SM Fairview.
▸ Upgrading the surgical facilities in the Trinoma clinic.
Financial Outcome
▸ The decrease in energy generation by the power generation segment translates to an overall decrease in revenue, but this was buffered by strong performance in the real estate and construction segments.
Non-Financial Outcome
▸ Though there was less electricity generation by the energy segment, its physical assets were still improved with the successful maintenance and repair activities conducted during the reporting period. Manufactured capital of all the other business segments were increased, with the exception of the Healthcare segment that reduced its capital by one facility.
