Oriental Petroleum and Minerals Corporation (OPMC) reported a remarkable rise in first-quarter profits for 2025, attributed to favorable foreign exchange gains and lower operating costs, despite a decline in oil sales revenue.
The company’s net income for the quarter rose to USD 1.31 million, a sharp increase from USD 289,000 in the same period last year. This surge was largely attributed to a foreign exchange gain of nearly USD 492,000, reversing the FX loss recorded a year earlier.
Revenue from petroleum operations dropped by 24% to USD 945,000, mainly due to a 20% drop in crude oil deliveries from the Galoc oil field and a 5% decline in average selling price, which settled at USD 76.28 per barrel.
“The revenue decline was due to both weaker global oil prices and a natural reduction in available oil reserves,” the company stated in its report.
Despite lower sales, production costs decreased by 33% to USD 414,000, as offshore operating and storage expenses were scaled down. The company’s gross profit margin improved to 46%, up from 43% last year.
Interest and dividend income from financial investments remained strong at USD 887,000, slightly lower from a year earlier. OPMC’s cash and cash equivalents also rose by 18% to USD 26.98 million, supported by proceeds from the redemption of preferred shares.
The company said its operations remain anchored in several service contract areas, including a 7.8% stake in the producing Galoc Field, a 30.3% interest in West Linapacan, and a 4.9% share in the SC 6B Bonita Block, which recently applied for a new development and production agreement with the Department of Energy.
“The consortium has submitted the required documents for transitioning Galoc and other blocks to Development and Production Petroleum Service Contracts (DPPSC) ahead of the existing contract’s expiration in December 2025,” OPMC said.
As of March 31, the company’s total assets stood at USD 91.83 million, up slightly from year-end 2024. Key financial ratios improved, with a return on equity of 1.5% and a current ratio of 29:1, signaling a solid liquidity position.
OPMC made sure to add that it foresees no material risks affecting its liquidity or operations in the short term and confirmed that there were no major capital expenditures or off-balance-sheet obligations during the quarter.
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