PetroEnergy income down 21% on higher expenses
Yuchengco-led PetroEnergy Resources Corp. (PERC) saw its earnings decline by 21 percent in the first nine months as expenses ballooned amid its expansion in the renewable energy market.
In a disclosure Friday, the company said net income decreased to P692 million from P874 million a year ago.
This, despite a 19-percent increase in revenues, which reached P2.57 billion.
PERC said power sales, particularly from its renewable energy units, buoyed the improvement of its top line, as it increased 24 percent to P2.1 billion.
The group attributed its electricity sales growth to the consolidation of PetroWind Energy Inc. (PWEI) with PERC’s financials. PERC had acquired EEI Power Corp.’s 20-percent equity in PetroWind.
It also received a revenue boost from PetroWind’s phase two project in Aklan, which started operations earlier this year.
However, costs of sales—or expenses directly related to producing products—jumped 19.5 percent to P1.31 billion.
Costs linked to power generation recorded the biggest increase at P950.45 million, 21.4-percent up.
The lower earnings were also blamed on higher interest and tax expenses following a series of direct equity acquisitions not just in PetroWind, but also in PetroSolar Corp. and PetroGreen Energy Corp.
The acquisitions were part of the group’s efforts to boost presence in the renewable market.
Through its clean energy arm PetroGreen, the firm has investments in a geothermal energy project in Batangas, wind farm in Aklan and solar hubs in Tarlac, Nueva Ecija, Pangasinan and Isabela.
