MANILA, Philippines - Lower revenues arising from the drop in oil prices in the international market resulted in a 70 percent drop in Oriental Petroleum and Minerals Corp.’s first half net profit.
In a regulatory filing, Oriental Petroleum booked an income of $966,289 in the first six months of the year, significantly lower from the $3.21 million income in the same period in 2014.
The company recorded petroleum revenues of $4.23 million, 69 percent lower than the $13.56 million recorded the previous year.
“The decline in crude oil prices was the major reason for this lower revenue,” the firm said.
Other income, consisting mainly of dividend and interest income, increased by 39 percent to $803,238 from $579,725.
“The increase in this account of about 39 percent was mainly due to income received from additional investments,” the firm said.
On the other hand, Oriental Petroleum slashed its total costs and expenses by 63 percent to $4.02 million from $10.93 million.
Bulk of the expenses came from petroleum production costs which totaled $3.23 million, 11 percent lower than the $3.61 million in same period last year.