MANILA, Philippines — PetroEnergy Resources Corp. (PERC), a member of the Yuchengco Group, reported a 7 percent increase in net income attributable to equity holders of the parent company, reaching P185.5 million in the first quarter of 2024. This is an improvement from the P173 million recorded in the same period last year.
Strategic Acquisition Boosts Earnings
PERC attributed the earnings growth primarily to its strategic acquisition of EEI Power Corp.’s (EEIPC) equity interests in its renewable energy subsidiaries, including PetroWind Energy Inc., PetroSolar Corp., and PetroGreen Energy Corp. This acquisition not only increased the company’s gross revenues but also led to a rise in financing expenses associated with the acquisition.
“The above acquisition of EEIPC’s investments and the consolidation of PWEI’s financials boosted not only the company’s gross revenues but also led to a rise in financing expenses tied to the acquisition of said shares,” the company stated.
Revenue Growth Driven by Electricity Sales
During the first quarter, PERC’s revenues surged by 55.55 percent, reaching P945.1 million. A significant portion of this revenue, over P785 million, was derived from electricity sales. The company also reported P149 million in oil revenues, benefiting from higher crude oil prices and favorable foreign exchange rates.
Cost and Expenses Analysis
The cost of sales for the period increased by 73.03 percent to P424.1 million, reflecting higher expenses in electricity sales and oil production. Additionally, general and administrative expenses nearly doubled, rising by 99.21 percent to P84.1 million. This increase was primarily due to the consolidation of PetroWind’s financials into PERC’s statements and higher costs related to documentary stamp taxes on loan availment and conversion.
Renewable Energy Expansion
PERC remains optimistic about expanding its renewable energy portfolio. The company is enhancing its electricity generation capabilities with the commissioning of the Nabas-2 wind power project in Aklan province. Additionally, through its subsidiary Dagohoy Green Energy Corp., PERC has commenced the installation of solar photovoltaic panels in Dagohoy town, Bohol province.
New Long-term Agreements
Another subsidiary, San Jose Green Energy Corp. (SJGEC), has entered into a 10-year agreement with the SN Aboitiz Power Group. Under this agreement, SJGEC will supply 15.6 megawatts of renewable energy from its facilities in Nueva Ecija province.
Strategic Divestment by EEI Power
The increase in PERC’s financial performance comes after EEI Power divested its stakes in all of PERC’s renewable energy subsidiaries last year for P2.69 billion. This move allowed EEI Power to refocus on its core construction and energy businesses while enabling PERC to consolidate and expand its renewable energy assets.
Future Outlook
With a strong commitment to renewable energy, PERC is well-positioned for continued growth. The company’s strategic acquisitions and ongoing projects in wind and solar energy are expected to bolster its revenue streams and enhance its market position. As the company leverages its expanded asset base, it aims to drive sustainable growth and deliver long-term value to its shareholders.
Conclusion
PetroEnergy’s strategic acquisitions and robust performance in the renewable energy sector have contributed to its positive financial results for the first quarter of 2024. By continuing to invest in and expand its renewable energy projects, PERC is poised to play a significant role in the Philippines’ transition to sustainable energy solutions.
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