PERC profit rises nearly seven-fold

MANILA, Philippines - PetroEnergy Resources Corp. (PERC) saw its net profit balloon nearly seven times in the first semester on the back of higher electricity sales as a result of commercial operations of its solar plant, which more than offset the impact of depressed global crude prices on oil revenues.

PERC reported an attributable net income of $775,377 in the first six months, a sharp 575-percent rise from $114,786 in the same period last year.

The company said consolidated revenues rose 28.99 percent to $16.1 million from $12.48 million mainly on electricity sales, which made up 79 percent of the total.

Electricity sales, which refer to the electricity power generated by its Maibarara geothermal power project and affiliate PetroSolar Corp., increased 51.57 percent to $13.45 million “mainly due to start of commercial operations of PetroSolar on Feb. 10, 2016,” PERC said in its latest financial report.

The solar project is among the developments which secured a guaranteed rate of P8.69 per kilowatt-hour under the Feed-in Tariff system of government.

PetroSolar, which owns and operates the 50-megawatt (MW) solar power plant in Tarlac, is partly-owned by PERC, through its subsidiary PetroGreen Energy Corp. with 56 percent and EEI Power Corp., a wholly-owned subsidiary of publicly-listed EEI Corp., with 44 percent.

Meanwhile, a base-load 20-MW Maibarara-1 geothermal power station is being operated by Maibarara Geothermal Inc., a joint venture among PERC, Trans-Asia Oil and Energy Development Corp. and PNOC Renewables Corp.

Oil revenues, meanwhile, cornered 15.57 percent of the company’s total revenues, which declined 26.64 percent from $3.602 million to $2.643.

“The decrease is mainly due to lower average crude oil price from an average of $55.42 per barrel to $35.59 per barrel,” the company said.

PERC president Milagros Reyes earlier said the company would continue to explore other renewable energy developments as it shifts its operations to power generation from oil production.