MANILA, Philippines – Basic Energy Corp. recorded a 10-percent drop in profits to P31 million in the first quarter as revenues declined compared with year-ago level.

In its financial disclosure, the company said its earnings slipped to P31.16 million from P34.82 million a year ago as revenues fell by a tenth to P41.63 million from P46.41 million.

“This was primarily due to the decrease in income from cost recoveries resulting from the previous sale of a subsidiary during the first quarter,” Basic Energy said.

Basic Energy is into oil and gas exploration through wholly-owned subsidiaries Basic Petroleum & Minerals Inc., an oil and gas exploration and mining company; Basic Diversified Industrial Holdings Inc., an investment holding company; and iBasic Inc., an information technology management company and service integrator. It also owns 72.58 percent of Southwest Resources Inc., an oil exploration company.

Basic Energy is presently a party, together with other oil exploration companies, in the exploration, development and production of contract areas in Service Contract 47 in offshore Mindoro and Service Contract 53 in onshore Mindoro.

Lower expenses, which hit P10.48 million in the first quarter from P11.59 million, were not enough to offset the drop in sale.

In December, Basic Energy inked an agreement with Australia’s Energy 2035 Ltd. to jointly explore opportunities to develop renewable energy sources in the Philippines.

Energy 2035 is engaged in the development of renewable energy in Australia, New Zealand and the Asia Pacific region. It aims to be a major supplier of both solid and liquid biomass fuels to European and North Asian markets.

Basic Energy, on the other hand, wants to be a major instrument in the country’s drive for energy self-sufficiency through clean, efficient and reliable energy sources.

Its two other wholly-owned subsidiaries include Basic Biofuels Corp., which is into the development of biofuels, and Basic Ecomarket Farms Inc., which is into agriculture, focusing initially on cassava development and production.

Source: http://www.philstar.com/business/806007/basic-energy-profit-slips-10-q1