Philodrill TEST

Summary

The Philadel Corporation held its 2024 virtual annual stockholders meeting, beginning with the Philippine national anthem and a prayer for guidance. Chairman Gerard Anon s Ramos opened the meeting, which included reports on the company's financial performance and activities, including a decrease in revenues and an impairment provision. The management report highlighted the company's exploration in oil and gas and its budding interest in renewable energy. The meeting also covered the reappointment of the external auditor, the election of directors, and a tribute to a retiring executive. The meeting concluded with a commitment to strategic direction and honoring the company's legacy.

Takeaways

• 📅 The Philadel Corporation held its 2024 Virtual Annual Stockholders Meeting, adhering to technology trends and company bylaws.
• 🙏 The meeting commenced with a prayer for guidance, blessings, and open-mindedness among attendees.
• 📑 Chairman Gerard Anon s Ramos officially called the meeting to order and appointed attorney Adrian Aras as secretary.
• 📈 The company's main revenue source is from its equity stake in the G of field under service contract 14 C1, with a noted 11% decrease in production year on year.
• 📉 Revenues decreased due to lower crude prices, and production costs increased from 105.4 million pesos in 2022 to 138.745 million pesos in 2023.
• 🔍 An additional impairment provision of 61.4 million pesos was declared for certain assets after a review by management and external auditors.
• 🌐 The company is involved in several service contracts for exploration and development, with SC 6B Bonita being the most advanced.
• 📊 First quarter performance showed an increase in petroleum revenues by 133% due to higher oil prices, despite a slight drop in production.
• 🌱 The company is exploring opportunities in the renewable energy sector, aligning with the global shift towards cleaner energy sources.
• 🏢 The management expressed gratitude to stockholders, partners, officers, and staff, and acknowledged the legacy and vision of the late chairman Mr. Alfredo C Ramos.
• 🎉 A special recognition was given to Mr. Rado Ina Zara for his 37 years of service, as he retires from his position as Treasurer and Vice President for Administration.

Q & A

What is the purpose of the Philadel Corporation's 2024 virtual annual stockholders meeting?

The purpose of the meeting is to discuss the company's activities, accomplishments, and financial performance for the year 2023, as well as to address any shareholder concerns and to conduct necessary corporate governance activities such as the election of directors and appointment of external auditors.

How are the stockholders participating in the meeting?

Stockholders are participating in the meeting via remote communication, either personally or by proxy, with a total of 105,542,656 shares representing 55.8% of the company's outstanding capital stock in attendance.

What is the role of Adrian Aras in the stockholders meeting?

Adrian Aras is appointed as the secretary of the meeting, responsible for recording the proceedings and ensuring compliance with the meeting's formalities.

What was the main source of Philadel Corporation's revenues in 2023?

The main source of Philadel Corporation's revenues in 2023 was the Galoc field under Service Contract 14C1, in which the company has a 10.18% equity stake.

How did the company's production and revenues change year-on-year?

Production decreased by 11% year-on-year, and due to lower crude prices, revenues also decreased from 237.55 million pesos in 2022 to a lower amount in 2023.

What additional provision was made by the management regarding the company's assets?

The management, in coordination with external auditors, conducted a review of the company's assets and determined that an additional provision of 61.4 million pesos was appropriate to declare a portion of these assets as impaired.

What is the status of Philadel Corporation's exploration and development activities in other service contracts?

Philadel Corporation is an operator or member of several other service contracts under exploration, development, or application with the Department of Energy, including SC14 C2, SC53 Manduro, SC6B Bonita, SC74 Lakan, and SC6A Octon, with various stages of progress in exploration and development.

How did the company perform in the first quarter of 2024?

In the first quarter of 2024, petroleum revenues increased by 133% year-on-year due to higher oil prices, despite a slight 7.2% decline in production, resulting in a net income of 16 million pesos compared to a net loss of 900,000 pesos for the same period in 2023.

Does Philadel Corporation have plans to venture into renewable energy?

While the company will continue to prioritize the exploration and development of oil and gas resources, it has also started to explore opportunities in the renewable energy sector in response to the growing demand for cleaner energy sources and the country's efforts to transition to cleaner energy.

How does the ongoing issue with China in the West Philippine Sea affect Philadel Corporation's operations?

The ongoing issue with China in the West Philippine Sea has no direct impact on the service contracts that Philadel Corporation is involved in, as these contracts are within the territorial waters of the Philippines and outside the controversial nine-dash line of China.

What is the significance of the retirement of Mr. Rado Ina Zara?

Mr. Rado Ina Zara is retiring after 37 years of service to Philadel Corporation, having held the position of Treasurer and Vice President for Administration. His retirement is a significant milestone, and his contributions to the company are greatly appreciated.

What is the process for the election of directors for the upcoming term?

The nominees for directors have been pre-qualified and approved by the corporate governance and nominations committee. The election process involves the casting of votes by the shareholders, with all nine nominees receiving sufficient votes to be elected as board members for the term 2024 to 2025.