Financial Performance

• First Balfour posted a net income of PHP79.2 million, significantly lower than by PHP335.6 million or 81 percent from last year’s PHP414.8 million following the lower margins reported from ongoing construction projects coupled with the higher finance expenses incurred on the short-term borrowings availed in 2023 and loan drawdowns made in 2022.
• First Balfour and Thermaprime reported a consolidated net loss of PHP158.6 million for 2023, a reversal of PHP685 million or 130 percent from a PHP526.4 million combined net income in 2022, reflecting the weaker bottom line of both companies during the year.
• As the awarding of some major projects were pushed back, the order backlog for  2023 was at PHP31.6 billion by year-end, which is significantly higher than 2022’s PHP6.5 billion

2023 Key Highlights

• In 2023, First Balfour solidified its position as an industry leader in the construction of renewable power and energy projects through the award of numerous projects including the following:
  • The PHP1.6 billion Engineering, Procurement, and Construction (EPC) contract for Energy Development Corporation’s (EDC) Battery Energy Storage System (BESS) in Tongonan, Bac-Man, and Southern Negros. The BESS facilities with a combined capacity of 40 MW will store excess power from geothermal plants for a flexible energy supply.
  • EDC’s massive investments in geothermal energy including the PHP1.4 billion contract for its Mahanagdong Binary Geothermal Power Plant, PHP338.1 million project for Bago Binary Geothermal Power Plant, PHP2.09 billion Drilling Operations Program Level 1 and Level 2,  PHP234.4 million expansive drilling operation for Amacan Geothermal Project Site Development Exploration Phase (Civil Works) - all these underscore EDC’s commitment to advancing its geothermal energy infrastructure, ensuring the continued delivery of renewable resources to its customers.
  • The PHP11.7 billion contract awarded by Globe STTelemedia GDC (GSG) to Leighton-First Balfour Joint Venture (FBLJV) to build a hyperscale data center in Quezon City called STT Fairview. The project’s first phase at 28 MW covers general construction works including civil, structural, architectural, and MEPF works. The hyperscale data center forms part of STT GDC Philippines’ expansion strategy, adding a significant 124 MW capacity to its portfolio.

• The Department of Transportation (DOTr) also awarded the FBLJV the PHP22.2 billion contract package S-03A of the North-South Commuter Railway (NSCR) Project, which covers 7.9 kilometers of railway viaduct and ground level structures, one elevated station in Buendia, Makati, and two ground level station buildings at EDSA and at the Senate.
• Moreover, FBLJV also secured the PHP24 billion contract for North-South Commuter Railway (NSCR) Package S-03B. This encompasses a 4.7-kilometer underground railway, a 1.4-kilometer ground-level railway, the construction of the FTI station, and tunneling works to connect FTI to the Senate Station of the Metro Manila Subway Project (MMSP).
• For T1 Rentals, its fleet has experienced a growth rate of 28 percent from 2020 to 2023. Its current fleet count stands at almost 900 units and hosts at least two asset disposal programs each year.
• T1 Rentals also expanded its nationwide footprint with the opening of its Clark Yard located within Clark Global City to support the infrastructure development in Central Luzon; particularly providing equipment rental services to North Commuter Railway projects.
• On the other hand, T1 Transport’s Electric Vehicle (EV) people transport division recently secured a contract from Cebu Pacific on October 13, 2023. The contract entails providing two EV Airport buses for the transportation of passengers from the terminals to the airplanes at MIAA. This service is scheduled to commence on January 10, 2024.
• T1 Transport has also finalized the memorandum of agreement with Maersk Logistics to provide trucking services for their logistics operations with regard to container transport. 

• As for the Balikatan Exercises, T1 Transport has provided a total of 514 trips from Subic Port to various parts of the country in a span of one month. 
• In its commitment to promoting green initiatives and contributing to the conglomerate’s mission of working towards a decarbonized and regenerative future, it provides an EV shuttle for its head office employees, implements the use of Hilti tools management for efficient work performance, improves welding productivity, and provides simulators for training and evaluation.