PetroEnergy’s net profit rises 9% to P944m amid stable operations

By Manila Standard Business – April 16, 2024, 8:35 pm

The Yuchengco Group’s listed energy arm PetroEnergy Resources Corp. (PERC) said Tuesday it posted a 9-percent increase in its consolidated net income in 2023 to P944 million from P863 million in 2022.

PERC said in a disclosure to the Philippine Stock Exchange this improved performance was due to the acquisition of additional stakes in its existing renewable energy (RE) portfolio and to sustained and well-managed power plant operations.

The company recorded a 30-percent increase in its consolidated assets in 2023 to P21.9 billion from P16.8 billion in 2022 as a result of its acquisitions.

PERC acquired from EEI Power Corp. (EEIPC) a 20-percent direct equity interest in PetroWind Energy Inc. (PWEI), a 44-percent direct equity interest in PetroSolar Corp. (PSC) and an additional 7.5-percent equity interest in PetroGreen Energy Corp. (PGEC), which is now a 75 percent-owned subsidiary of PERC.

The company funded these acquisitions through term loans from local banks.

PERC and PGEC’s combined 60-percent equity in PWEI enabled the consolidation of PWEI’s financials into that of PERC’s, further increasing the latter’s assets and liabilities.

Another reason for the increase is the start of the funding and construction of PWEI’s 13.2-MW Phase 2 of the Nabas wind power project in Aklan, of which 6.6 MW is now under testing and commissioning.

PERC also attributed the higher income to the higher electricity sales of its RE projects and higher interest income generated by the proceeds from Kyuden International Corp.’s 25-percent equity investment in PERC subsidiary PetroGreen Energy Corp.