Renewable energy expansion dampens PetroEnergy income

MANILA, Philippines — The financial weight of Yuchengco-led PetroEnergy Resources Corp. (PERC)’s strategic push into the green energy space took a toll on its first quarter earnings.

PERC posted an attributable net income of P143.5 million in the first three months, down by 22.7 percent from P185.5 million in the same period in 2024.

The decline was attributed to costs related to the company’s renewable energy (RE) expansion, combined with lower earnings from its oil operations in Gabon, West Africa. 

Revenues, on the other hand, inched up by 5.8 percent to P1 billion from P945 million previously on the back of robust power sales, which sizzled by 12.7 percent to P885.3 million from P785.9 million.

PERC recently commissioned three new generating units of its RE portfolio, including the first phase of its 13.2-megawatt (MW) Nabas-2 wind project in Aklan.

It also switched on the 19.6-MW San Jose Solar in Nueva Ecija and the 27-MW Dagohoy Solar in Bohol.

In the upstream business, oil production in its concession in offshore Gabon plunged to 435,000 barrels in the first three months from the 464,000 barrels lifted last year.

The decline in average crude prices also contributed to lower oil revenues, the company said.

PERC closed the first quarter with total assets rising by eight percent to 23.82 billion. Total liabilities and equity, meanwhile, amounted to P9.92 billion and P13.9 billion, respectively.

The company saw its earnings surge by 200 percent to P471.8 million in 2024 from P156.9 million in 2023, driven by stronger power sales.