First Philec, Inc. (FPI) is a pioneer and leader in electrical transformer solutions in the Philippines. For over 50 years, FPI has been the preferred provider of local power distribution utilities, commercial, and industrial businesses in the country. It is also the largest amorphous transformer manufacturer in Southeast Asia. FPI continues to drive economic growth and national development by supporting key industries and public infrastructure.
Financial Performance
- In 2023, First Gen recognized revenues of USD2.5 billion, a 7.2 percent decrease from the previous year’s USD2.7 billion, as a result of a decrease in revenues across all the platforms. The natural gas portfolio accounted for 65.3 percent of First Gen’s total consolidated revenues, while 32.1 percent came from EDC’s geothermal, wind, and solar power plants. The balance came from the Company’s hydro power plants and its retail electricity supplier, First Gen Energy Solutions.
- Despite lower revenues, First Gen reported a 4.4 percent increase in attributable recurring net income for 2023 at USD277.0 million in comparison to USD265.4 million in 2022. This can be attributed to earnings from EDC, whose geothermal plants benefited from higher power prices and higher production margins
2023 Key Highlights
- The year 2023 marked the first revenue recognition for FPI’s US export market endeavors. The export market has contributed PHP300 million in orders to FPI’s New Business revenue, with Maschinenfabrik Reinhausen (MR), Avangrid, and Portland General Electric (PGE) emerging as significant customers in 2023.
- In terms of customer orders, FPI’s core business experienced moderate growth this year. Non-transformer orders on the other hand, saw a significant uptick, with a 47 percent increase for DLI and a remarkable 100 percent surge for SA products. Contrary to some beliefs, an arrester does not absorb lightning or stop lightning.
- Aside from continuing to exceed its production capacity of 2,500 transformer units per month, FPI upgraded several equipment to minimize its carbon footprint. footprint. Specifically, it added to its production floor electric-powered forklifts and adhesive machines that use paper instead of the usual plastic tapes.
- In 2023, FPI’s number of customers increased by 12. Ten are from the Electric Cooperatives Market while the remainder are from the Private DU segment. FPI has established a regular communication schedule with its US customers, and this year, it is proud to have gained recognition from three new customers in the US.
- FPI has also officially launched its Smart Meters or Advanced Metering Infrastructure, which has been accredited by the Energy Regulatory Commission (ERC). FPI looks forward to participating in bids for Meralco’s future deployment plans. Additionally, it has formalized its partnership with NASCENT for battery storage initiatives and is working on developing EV charging stations that can support the country’s shift towards electrification. This partnership focuses on research and development, with the ultimate goal of FPI having its own Na-ion battery cell by 2025.
- FPI has achieved milestones in battery and energy storage, progressing through the design phase of its five-kWh pole-mounted energy storage system (ESS). Simultaneously, FPI is in the process of acquiring lithium carbon battery samples from Hitachi.
- After the 2021 launch of FPI’s Super Green transformers, its current focus is on fortifying its marketing strategies to effectively position Super Green in the market. FPI has been actively engaging key clients like Meralco and the Aboitiz Group by organizing product demonstrations, providing product samples, and hosting round-table discussions. These interactions delve into the transformative benefits and consequential impact Super Green Transformers can have on shaping future energy endeavors. Additionally, FPI has initiated discussions to extend its presence in Canada and Japan.
Looking Forward
- In 2024, FPI’s main goal is to finalize and implement comprehensive commercial plans for Super Green transformers, aiming to reintroduce and reinforce the product among its valued customers.
- FPI anticipates further advancements, particularly in securing bids for Advanced Metering Infrastructure or Smart Meters in 2024. Throughout this year, FPI’s primary focus has been to ensure that its Smart Meter technology and capabilities not only align with the standards set by Meralco but also meet the stringent requirements outlined by the ERC.
- FPI is also strategically focusing on building capabilities that enhance its value proposition, particularly in the market and plant segments. Simultaneously, the company is fostering a resilient corporate culture adept at navigating the dynamic business landscape. This commitment extends to driving digital transformation and enhancing FPI’s capabilities to thrive in the evolving business landscape.
- In a volatile, uncertain, complex, and ambiguous (VUCA) world, FPI believes its products will be well-suited to meet the current and future needs of its customers, especially if these products are able to address pain points caused by extreme weather, higher penetration of renewables, a hotter Philippine climate, and the impact of electrification of transport.
- When committing to and executing its strategic initiatives, FPI anchors its efforts in its brand promise of Product Availability and Fastest Lead Time. It takes pride in delivering reliable and quality service to its customers.
- The growing integration of Distributed Energy Resources, particularly solar, poses a risk of higher voltage stresses on connected equipment, such as transformers. Monitoring and mitigating these stresses are crucial to preventing overloads during the feeding-in of solar PVs to the grid.
- The widespread adoption of electric vehicles with fast charging systems may accelerate the aging of transformers, diminishing their lifespan. These developments pose an opportunity for FPI to improve the technology and performance of its products to be better prepared for these changes in the market.
