Equity acquisition in existing renewable energy (RE) projects had driven up the net income of Yuchengco-led PetroEnergy Resources Corporation (PERC) by 9.0% last year to P944 million from P863 million in 2022.

The corresponding portfolio boost, according to the company, likewise shored up its consolidated asset base by 30% to P21.9 billion from the previous year’s P16.8 billion.

“These growth and improved performance are mainly attributable to the acquisition of additional stakes in its existing renewable energy (RE) portfolio and to sustained and well-managed power plant operations,” PERC emphasized.

The income upturn yielded P163 million worth of dividends to PERC, being the parent firm of its renewable energy investment arm PetroGreen Energy Corp (PGEC); and that also warranted PERC’s declaration of 5.0% cash dividends to shareholders at the rate of P0.05 per share as settled last December.

The Yuchengco firm added “the increase in consolidated net income is attributable to the higher electricity sales of its RE projects and higher interest income generated by the proceeds from Kyuden International Corporation’s 25% equity investment in PGEC (PetroGreen Energy Corporation).”

Fundamentally, the company indicated that its electricity sales climbed “due to the full-year operation of the 32 MW Maibarara geothermal power project - units 1 and 2” – while in 2022, the plant had to undergo its preventive maintenance activities.

For its PetroWind asset, the company logged higher generation last year “particularly due to higher wind speeds in the months of July and August 2023; while at its PetroSolar plant, its performance has been rated “consistently good.”

Meanwhile, the company’s acquisitions include those of EEI Power Corporation’s 20% direct equity interest in PetroWind Energy Inc; then 44% direct equity in PetroSolar Corp and 7.5% shareholdings in PetroGreen Energy Corp (PGEC) – which are all affiliate companies of PERC.

On the PGEC shares purchase, it was noted that following the latest transaction, PERC’s shareholdings in that subsidiary already reached 75% level.

“These acquisitions have been funded through term loans from local banks,” the company stressed; adding that “PERC’s and PGEC’s combined 60% equity in PWEI enabled the consolidation of PWEI’s financials into that of PERC’s.”

Another major income driver for the company last year has been the 13.2-megawatt phase 2 of its Nabas wind farm project in Aklan.

“The RE projects’ notable performance tempered the impact of the impairment loss recognized on account of the decline in the valuation of PERC’s minority interest in its oil assets in Gabon, West Africa, as well as the notional remeasurement loss and amortization of an intangible asset in relation to the investments in PWEI,” the company stated.

Onward, the company is advancing to commercial development phases its array of RE projects – including blueprinted solar installations in Bohol, Isabela, Nueva Ecija and Pangasinan.