PetroEnergy reallocates project funding to loan payments

Listed firm PetroEnergy Resources Corporation (PERC) will be re-allocating previously scheduled project funding to loan payments, according to its disclosure to the Philippine Stock Exchange.

The Yuchengco-led firm noted that its company board of directors approved the reallocation of funds that were initially intended for projects. Those cash were previously raised from its stock rights offering (SRO) activity.

The company emphasized that R177.720 million supposedly earmarked for the phase two of its Tarlac solar power project will now be funneled “to payment of a portion of the company’s loans and corresponding interests.”

Such debt facility was secured when the company advanced to implementation its 36-megawatt Nabas wind farm project in Aklan; as well as its first phase 50MW solar farm in Tarlac.

PERC’s proceeds from its stock rights offering hovered at R752.924 million; and these were largely channeled to the company’s renewable energy ventures in the past 3-4 years.

Of the total amount, the listed firm noted that R715.519 million had been earmarked for RE projects; while R36.774 million had been set for its general corporate requirements.

Of the project funding, it was further emphasized that R537.799 million were spent directly on the installation of RE facilities; while R177.720 million has been programmed for loan payments and interest charges.

For the targeted solar plant expansion in Tarlac, the company indicated that “due to land and some technical constraints, the 49MW Tarlac-2 solar project will be built in stages instead, beginning with an initial 20MW first phase.”

Given the reduction in investment requirement then, the original funding allotment shall be reduced to R147.672 million at this time.

It further qualified that “the difference of R177.720 million may already be apportioned for some other purposes.’

The wind and solar plants of PetroEnergy were both qualified in the second round of feed-in-tariff (FIT) incentive schemes under the Renewable Energy Act.

Fundamentally, the next phases of RE investments that the company will be engaging in shall be those of non-FIT developments; but are instead underpinned by the Renewable Portfolio Standards (RPS) framework for the industry.