PetroEnergy posts 16% profit hike to $1.06 M in Q1

Manila, Philippines - Upstream oil firm PetroEnergy Resources Corp. said its profit posted a double digit growth in the first quarter due to higher oil prices.

“The company generated net income attributable to equity holders of the parent firm amounting to $1.06 million,” PetroEnergy said in a report.

The amount was 16.4 percent compared with the $911,737 net income recorded in the first quarter of last year.

Total oil revenues rose 3.39 percent to $3.53 million from $3.42 million a year ago, the company said.

“The increase was due to a 15.55 percent increase in average crude oil prices from $104.59 per barrel to $120.85 per barrel,” PetroEnergy said.

The main revenue source for the company is its share in the oil production in the Etame field in Gabon, West Africa.

“Vaalco Inc., the operator of the said project, and the members of the consortium have identified some wells to be drilled in order to increase production,” PetroEnergy said.

However, favorable prices were offset by the decrease in cost recovery rate and barrels produced to 1.52 percent at 1.92 million barrels, respectively, from 1.62 percent and 2.09 million barrels a year ago.

Expenses in oil production rose 26 percent to $1.45 million from $1.15 million due to higher costs of boat hire and aircrafts rent.

PetroEnergy also has upstream oil operations in Service Contract (SC) 14-C2 in West Linapacan, Northwest Palawan and SC 51 East Visayas.

PetroEnergy also owns Maibarara Geothermal Inc., the proponent of the 20-megawatt Maibarara geothermal project in Laguna and Batangas.

In September, PetroEnergy signed a P2.4-billion long-term loan facility with Rizal Commercial Banking Corp. and Bank of the Philippine Islands to finance the geothermal project.

Maibarara Geothermal is a joint venture 65 percent owned by unit PetroGreen Energy Corp., along with Tran-Asia Oil and Energy Development Corp. and state-run PNOC Renewables Corp.

Late last year, PetroEnergy Resources decided to abandon its wind energy project in Sual, Pangasinan after tests showed the area is not commercially feasible for wind power.