2016 ANNUAL REPORT

We also recently celebrated our 10th year listing in the Philippine Stock Exchange. We’ve had a good run. We hope to continue to prove to our investors that the decisions we have made were prudent decisions and the stock price should reflect that.
Our 2016 efforts were focused on three things: (1) future-proofing, or making investments and improvements on clean energy–what we believe will be the energy norm in the future; (2) evaluating opportunities in underserved markets and lacking power infrastructure like LNG terminals and new hydro concessions in Mindanao; and (3) solidifying our commitment to being a socially responsible corporation.

THE SHAPE OF OUR FUTURE

Upheaval in the energy markets is looming on the horizon. The price of coal continues to fluctuate, whereas renewable technologies have bridged the divide between niche and mainstream markets. For the first time, we are seeing developing countries out-bid their developed counterparts in terms of their investments in RE.
The disruption of the energy industry is exciting but not without its risks. While 2016 emphasized the execution of our investment program and completion of the San Gabriel and Avion gas-fired plants, this was also the year where we had to make decisions that will set the Company’s long-term direction. The decision to reject coal was hard-won, but once made, we felt relieved of a burden on our conscience, and confident to be on the side of good.
Developing countries like the Philippines have the opportunity to leapfrog to this new energy future and enjoy the benefits and the choices this offers. As a utility, it is important for us to be agile, flexible and even more customer-focused. We hope to see more of our peers in the industry transitioning from conventional fossil fuel power generation and collaborating in renewable technology development. We hope to see forward-looking leadership in government and regulatory agencies to move towards a cleaner energy future. We hope to find partners just as passionate about natural gas, the cleanest among the fossil fuels, and RE as we are. We envision a future that prioritizes low-carbon, efficient, renewable energy. What First Gen is doing is investing in making this vision a reality.
Thank you for your continuing support.
FRANCIS GILES B. PUNO
President
First Gen Corporation