“The fluctuation in crude oil prices in the last two quarters plus the fluctuating foreign exchange rates had a favorable impact on the company’s net income,” the company said in a financial report submitted to the stock exchange. “With the continuing rise in the price of crude and dollar/peso exchange rate and continuous oil production in Gabon, [West Africa] the company is expected to earn more revenues,” it said.
The bulk of the company’s revenues come from its oil exploration projects in Gabon, West Arica.
PetroEnergy also made gross oil reserves of $10.905 million, up by 28% from the earlier year’s $8.482 million. The revenue increase is mainly because of higher crude oil prices in 2008 which averaged $92.81 per barrel, compared to $71.09 the preceding year. This jacked up oil production to 7.794 million barrels last year compared to 7.407 million barrels in previous year.
Crude oil inventory totaled to $309,000 last year, down by 37% from $492,000 in previous year, because of the lower number of barrels of oil sold towards the end of 2008, as demand tapered off.
It also reported total expenses of $7.3 million, for the year-end 2008, compared with the total expenses $5.77 million in the previous year.
“While the volatile global economy has led many companies to scale down their plants and operations, we look at the current bearish environment as the opportune time to prepare for long-term growth. Although we have been invited in the recent past to participate in domestic biofuel and gas-to-liquid projects, we concluded that it was not yet timely to invest in these undertakings,” the company said.
Renewable energy, on the other hand, is the better and logical sector in which to plant our future growth. The inevitable, if long-term, depletion of hydrocarbon resources makes renewable energy the fuel of the future, the company said, adding that wind and geothermal energy [are] promising areas for our company’s expansion.”
