PetroEn­ergy dou­bles net profit to $7.7 M

Manila Bulletin - - Business News - By MYRNA M. VELASCO

Chiefly driven by the per­for­mance of its re­new­able en­ergy projects, the con­sol­i­dated in­come of listed firm PetroEn­ergy Re­sources Cor­po­ra­tion (PERC) more than dou­bled to US$7.71 mil­lion in the three quar­ters this 2017 from last year’s $3.81 mil­lion in the same pe­riod.

That so far brought in 227 per­cent hike in net in­come to PetroEn­ergy’s eq­uity hold­ers to $4.18 mil­lion from the year-ago fig­ure of $1.28 mil­lion.

The com­pany em­pha­sized that the in­creases in net in­come and in­come “were mainly driven by the ef­fi­cient op­er­a­tion of PERC’s three re­new­able en­ergy projects.”

PetroEn­ergy’s sus­tained “money mak­ers” had been its 20megawatt Maibarara geo­ther­mal power project in Batan­gas; 36MW Nabas wind farm in Ak­lan and its 50MW Tar­lac so­lar power fa­cil­ity.

Its wind and so­lar-gen­er­ated ca­pac­i­ties are un­der­pinned by the feed-in-tar­iff (FIT) in­cen­tive sys­tem for RE projects, mak­ing their rev­enue stream then more pre­dictable – at least in the lens of its man­age­ment, eq­uity hold­ers and lenders.

The net in­come growth of each ven­ture had been as fol­lows: 58 per­cent for the Maibarara geo­ther­mal fa­cil­ity; 25 per­cent for its PetroSo­lar farm; and 8.0 per­cent for the Nabas wind project.

The com­pany’s op­er­a­tions in the up­stream petroleum sec­tor had also been re­cently see­ing “green shoots of re­cov­ery,” with global crude oil prices al­most steady at the $50-plus per bar­rel range through­out this year.

“Slightly higher av­er­age crude oil prices also con­trib­uted to the profit in­crease, with av­er­age price reach­ing $50.35 per bar­rel for the third quar­ter com­pared to $38.08 in the same pe­riod last year.”

In fact at this point, many global oil play­ers are al­ready a bit happy with how oil prices have been shap­ing, al­though the equi­lib­rium price be­ing awaited for new field dis­cov­er­ies is not quite there yet.

The oil mar­ket nonethe­less had con­sid­er­ably gone far al­ready from bat­tling last year’s de­press­ing price level, with it hit­ting the rock bot­tom of $30 per bar­rel.

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