Oil exploration firms post profit gains in 2011

MANILA, Philippines - Listed oil exploration firms recorded profit gains last year on the back of favorable prices that jacked up revenues from their petroleum service contracts (SC), the companies told the local bourse.

Philodrill Corp. almost doubled its earnings to around P1.1 billion last year while PetroEnergy Resources Corp. posted a five-percent profit rise to almost $3 million from a year ago.

In its financial statement, Philodrill said its petroleum revenues jumped more than half to P1.5 billion last year from P984 million a year ago.

“For the year 2011, the increase in revenues was accounted for mainly due to the company’s share in Galoc revenues,” Philodrill said.

“Total production volume decreased by 19 percent to 2.29 million barrels from its 2010 level of 2.83 million but was offset by the 41-percent increase in the average price per barrel in 2011 of $113.38 as compared to $80.54 in 2010,” it added.

The company sourced its oil from Nido, Matinloc, North Matinloc and Galoc gas fields.

“The consortium completed a total of nine shipments from the three fields in 2011, all with Pilipinas Shell Petroleum Corp. whose crude oil sales agreement with the SC 14 consortium expires in February 2012,” Philodrill said.

Total costs and expenses went up to P510.4 million last year from P463.7 million a year ago.

Moving forward, the company is in talks with several firms for more exploration projects.

“The company continues to consider farm-in proposals from local and foreign oil companies, which have offered to undertake additional exploration/development work and implement production enhancement measures,” Philodrill said.

The oil firm added that new exploration and development will entail no costs for the company aside from equity in the projects.

Philodrill was incorporated in 1969 to engage in oil, gas and mineral exploration and development. In 1989, it changed its primary purpose to that of a diversified holding company while retaining petroleum and mineral exploration and development as one of its secondary purposes.

Active petroleum projects of the company include the production and exploration areas in offshore Palawan and South Sulu Sea and onshore Mindoro.

Meanwhile, PetroEnergy said its net income attributable to equity holders of the parent firm rose five percent to $2.97 million last year from $2.79 million in the previous year.

Oil revenues climbed by a more than a quarter to $13.54 million from $10.78 million in 2010.

“The 25.59-percent increase was due to higher number of barrels produced at 8.06 million at an average price of $111.31 per barrel,” PetroEnergy said.

The company added that it produced only 7.33 million barrels at an average price of $78.07 per barrel in 2010.

Its operations include SC 14-C2 in West Linapacan, Northwest Palawan and SC 51 in East Visayas. But revenues are sourced from a production sharing contract in Gabon, West Africa.

Higher revenues offset the 20-percent jump in expenses to $9.8 million from $8.34 million a year ago.