Friday, November 17, 2017

PetroEnergy doubles net profit to $7.7 M



Published By Myrna M. Velasco

Chiefly driven by the performance of its renewable energy projects, the consolidated income of listed firm PetroEnergy Resources Corporation (PERC) more than doubled to US$7.71 million in the three quarters this 2017 from last year’s $3.81 million in the same period.
That so far brought in 227 percent hike in net income to PetroEnergy’s equity holders to $4.18 million from the year-ago figure of $1.28 million.
The company emphasized that the increases in net income and income “were mainly driven by the efficient operation of PERC’s three renewable energy projects.”
PetroEnergy’s sustained “money makers” had been its 20-megawatt Maibarara geothermal power project in Batangas; 36MW Nabas wind farm in Aklan and its 50MW Tarlac solar power facility.
Its wind and solar-generated capacities are underpinned by the feed-in-tariff (FIT) incentive system for RE projects, making their revenue stream then more predictable – at least in the lens of its management, equity holders and lenders.
The net income growth of each venture had been as follows: 58 percent for the Maibarara geothermal facility; 25 percent for its PetroSolar farm; and 8.0 percent for the Nabas wind project.
The company’s operations in the upstream petroleum sector had also been recently seeing “green shoots of recovery,” with global crude oil prices almost steady at the $50-plus per barrel range throughout this year.
“Slightly higher average crude oil prices also contributed to the profit increase, with average price reaching $50.35 per barrel for the third quarter compared to $38.08 in the same period last year.”
In fact at this point, many global oil players are already a bit happy with how oil prices have been shaping, although the equilibrium price being awaited for new field discoveries is not quite there yet.
The oil market nonetheless had considerably gone far already from battling last year’s depressing price level, with it hitting the rock bottom of $30 per barrel.

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