PetroEnergy 2024 profit surges 89% to P881M

MANILA, Philippines – PetroEnergy Resources Corp. (PERC) has reported a significant jump in its earnings last year, mainly because of a downward adjustment in its 2023 financial report and the activation of more renewable plants.

In a disclosure on Monday, the listed energy arm of the Yuchengo Group of Companies said consolidated net income rose by 89 percent to P881 million.

Earnings attributable to equity holders of the parent company tripled to P471.8 million from P156.88 million.

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This, as the profit in 2023 was revised to P466 million from the initial P944 million due to the sharp “paper loss” seen with its additional investment in one renewable unit.

The firm explained that recognition of loss on remeasurement involving its acquisition of a 20-percent interest in PetroWind Energy Inc. from EEI Power Corp. surged to P514 million from an earlier estimate of P45.89 million.

“[This was] in accordance with existing accounting standard that requires the completion of the Purchase Price Allocation Study within one year from the transaction …,” it said.

Excluding this scenario, its bottom line should have dipped by 6.6 percent on higher interest expenses.

Another factor that propelled its earnings include the completion of these three clean energy facilities: the first three wind turbine generators of the 13.2-megawatt (MW) Phase 2 of the Nabas wind power project in Aklan; the 27-MW Dagohoy solar power project in Bohol; and the 19.6-MW San Jose solar power project in Nueva Ecija.

Thanks to additional power capacity from these renewable energy plants, the PERC saw a 21-percent increase in its electricity sales to P2.81 billion from P2.33 billion.

The improved power sales softened the impact of the weaker oil revenues on its financial performance, which reached P520 million from P623 million.

Amid its expansion, PERC’s total assets ended at P23.35 billion in 2024.

The company said “further growth is expected” with two more solar farms slated for testing and commissioning by the latter part of the year.

The PERC previously said that it was “actively expanding” its clean power portfolio with new solar and offshore wind energy developments across the Philippines.