PetroEnergy income up 48% to P253 M

Published May 18, 2022, 3:26 PM

by Myrna M. Velasco

Yuchengco-led PetroEnergy Resources Corporation (PERC) registered robust 48 percent increase in net income to P253 million in the first quarter this year versus a leaner P170 million in the same period last year.

From that financial outcome, the company emphasized that net earnings attributable to the equity holders of PERC had climbed by 67 percent to P177 million from a comparatively modest scale of P106 million last year.

“The improvement in the financial performance is mainly due to higher crude oil prices – from average $60.97 per barrel in the first quarter of 2021 to average $107.95 per in first quarter of 2022,” the company stated.

PERC has stake in petroleum production in Gabon West Africa that helped propped up its revenues during the quarter, given surging oil prices in the world market.

Apart from brisk cash yield in its exploration and production (E&P) business segment, PERC indicated that it also generated “higher electricity sales from the Tarlac solar and Nabas wind power plants,” which are among its currently operating renewable energy (RE) generating assets.

Relative to hiked earnings within January-March this year, PERC similarly noted that it was able to reduce interest expenses, “resulting from installment payments of loan principals.”

To date, the listed Yuchengco company affirmed that it has healthy financial position – with aggregate assets worth P13.6 billion as well as total equity of P8.6 billion while its book value within this quarter reached P10.12 per share.

Company executives previously sounded off that PERC will continue with planned expansion projects in the RE space – such as the targeted capacity ramp up of its 20-megawatt Maibarara geothermal plant; and additional installations for solar and wind facilities — including investments in offshore wind farms.

For the full year of 2021, PERC reported slight 3.0 percent increase in consolidated net income to P655 million from P646 million in 2020; and that exhibited 2.0-percent improvement in earnings attributable to parent firm at P325 million.

Last year’s income drivers had also been its petroleum concession in Africa since global oil prices were already at escalated levels in 2021; then complemented by its operating solar and wind facilities which turned in favorable revenues as well as bottom line results.

PERC, nevertheless, stressed “these profit-drivers were offset by impairment recorded on the company’s West Linapacan and Octon petroleum service contracts amounting to P304 million,” hence, that resulted in overall lower-than-realized income for last year.