I. 2022 FINANCIAL HIGHLIGHTS

Amount in Million Philippine Peso (except number of shares)

Financial Position

Financial Performance

69% higher than 2021’s Php 325 million.

The increase in global crude oil prices, and consequently, the increase in our oil revenues from Gabon, made up for the 11% decline in electricity sales due to the nearly month-long major preventive maintenance shutdown of our 32 MW Maibarara geothermal power facilities in February 2022.

Three major strategic corporate moves were successfully executed consistent with our goals of increasing our power generating capacity and deliberate shift away from fossil fuels towards renewable energy (RE). First, we welcomed Kyuden

Second, PGEC and its Danish partner, Copenhagen Energy (CE) formed three (3) separate special purpose vehicles (SPVs) under the BuhaWind Energy corporate platform to oversee the investment and development of the offshore wind service contracts in Northern Luzon, Northern Mindoro, and East Panay awarded by the Department of Energy (DOE) in 2021. These SPVs further strengthen our commitment to contribute to the country’s energyresiliency by adding 3-4 GW of clean power from offshore wind energy by ~2030.

PetroSolar Corporation (PSC). This move will not only increase our stake in these revenuegenerating renewable energy companies, but also consolidates the Yuchengco Group of Companies’ (YGC) major energy holdings under PERC.

Operations

Finally, PERC entered into a Share Purchase Agreement with EEI Power Corporation (EEIPC), the energy arm of EEI Corporation, for the acquisition of EEIPC’s equity holdings in PGEC, PetroWind Energy Inc. (PWEI), and of electricity, translating to gross revenues of Php 873 million. The construction of a new substation, which will complete the connection requirement set by the Energy Regulatory Commission (ERC) and the National Grid Corporation of the Philippines (NGCP) for Tarlac-2’s full 49MW capacity is well underway and is expected to be completed by the second quarter of 2023.

In 2022, our Gabon Consortium managed 11 liftings yielding 5.13 million barrels of oil (MMBO). We successfully completed the well-workover and drilling program in our Etame oilfields. We expect the field’s production to be sustained at ~18,000 barrels of oil per day (BOPD). We also managed to replace the old Floating Production Storage and Offloading (FPSO) vessel, Petroleo Nautipa, with a new Floating Storage and Offloading (FSO) vessel, the Teli. All crude oil processing activities are now carried out in the centralized Etame platform. These undertakings are geared towards prolonging the life of the fields, which have an estimated remaining recoverable reserves of ~25 MMBO from existing wells. Since the Gabon oilfield was put online in 2002, a total of 130 MMBO have been extracted to date.

In the Philippines, we retain our participating interests in two (2) petroleum blocks – the SC 75 (Offshore Northwest Palawan) and SC 14C2 (West Linapacan). Most of the on-site activities for these fields have been suspended due to geopolitical concerns in the areas. The Operators are currently awaiting instructions from the Department of Energy (DOE) when and how to proceed with their respective development work program in these areas.

In Aklan, our 36MW Nabas-1 Wind Power Plant exported a total of 81 GWh of clean power, which yielded gross revenues of Php 660 million.

All these operational milestones and accomplishments were achieved through efficient power plant maintenance programs and effective resource management initiatives. These have also enabled us to continuously support our host communities through our We Power H.E.L.P. (Health, Education, and Livelihood Projects) Corporate Social Responsibility (CSR) program, particularly our support for education. Since 2011, we have awarded 65 scholarship grants and have produced 30 graduates in the fields of engineering, hospitality management, accountancy, and information technology.

August 2022, we secured the solar energy operating contract from the DOE and the corresponding Environmental Compliance Certificate (ECC) from the Department of Environment and Natural Resources (DENR) for our 25MWDC Bugallon Solar Power Project (BSPP) in Pangasinan. We are currently working on the necessary permitting requirements and technical design for this project.

Our Company’s renewable energy ventures continue to make headway. The 20MW Maibarara-1 and 12 MW Maibarara-2 Geothermal Power Plants in Sto. Tomas, Batangas, reached 2 million MWh in gross generation, and maintained a high capacity factor of 91% since commercial operations started in 2014. In 2022, both power plants produced a combined output of 224 GWh in gross generation equivalent to Php 823 million in gross revenues.

Our 50MWDC Tarlac-1 and 20MWDC Tarlac-2 Solar Power Plants in Tarlac delivered 100 GWh

Looking Ahead

In 2021, we made a big move to scale up our RE portfolio and to welcome and partner with credible investors who share our vision and passion. We are pleased to share that we continue to advance in this endeavor.

We are on track to adding four (4) new utility-scale solar projects in our portfolio. In

In September 2022, we ceremonially launched the 27MWDC Dagohoy Solar Power Project (DSPP) in Bohol. When completed in Q3 2024, DSPP will be the first large-scale renewable energy power plant located within the province and is expected to improve grid stability and electricity supply in Bohol.

In addition, PGEC is currently finalizing the term sheets for the takeover of two (2) existing solar projects in Northern Luzonthe San Jose Solar Power Project (SJSPP) in Nueva Ecija and the Limbauan Solar Power Project (LSPP) in Isabela. The San Jose project covers 17.1 hectares operational in 2025.

It is also “all-systems-go” for our 13.2MW Nabas-2 onshore wind power project (Nabas-2) in Aklan. Nabas-2 will consist of six (6) units of 2.2MW wind turbine generators (WTGs) to be supplied, operated, and maintained by Vestas, one of the world’s leading energy solution providers.

On February 22, 2023, PWEI secured a Php 1.8 billion funding for the project with the Development Bank of the Philippines (DBP). After securing the Special Agreement on Protected Area (SAPA) from DENR, site development for Nabas-2 is proceeding according to plan with a target completion by the first half of 2024.

In geothermal energy, we are delighted to share that independent and internal reviews of our Maibarara resource show encouraging prospects for further capacity expansion. This is

THEY DREAM, WE BUILD.

Is In Offshore Wind Energy

The BuhaWind Energy joint venture partners PGEC and CE are working with local industry movers and regulators to ensure that critical enablers such as alignment of regulatory frameworks, offtake mechanisms, grid connection, support infrastructure, and efficient permitting system will be in place for offshore wind power investments and projects to be realized.

With all these projects and the continuous support of our dear shareholders, we expect our renewable energy capacity to double from 138 MW to 277 MW by 2025 and further increase to 317 MW by 2027, at which time the construction of our first offshore wind power project is expected.

Our Company has gone into a long, challenging, and fruitful evolution – from a technical service provider, to engaging in upstream oil exploration and production locally and overseas, and now into renewable energy. More than ever, our mission of providing value to our shareholders, while ensuring we remain a socially and environmentally responsible Company, serves as a faithful guide in this challenging journey.

We believe deeply that what we do today impacts future generations. And it is our corporate duty to do whatever is possible to turn the dream of a greener, healthier, more sustainable world into reality.

Together, we can, and we must.

20MW Maibarara-1 Geothermal Power Facility (Sto. Tomas, Batangas)

12MW Maibarara-2 Geothermal Power Facility (Sto. Tomas, Batangas)

36MW Nabas-1 Wind Power Facility (Nabas, Aklan)

50MWdc Tarlac-1 Solar Power Facility (Tarlac)

20MWdc Tarlac-2 Solar Power Facility (Tarlac)

140.8 kWp ETY Bldg. Solar Rooftop Project (Binondo, Manila)

14MW Nabas-2 Wind Power Project (Aklan)

27MWdc Dagohoy Solar Power Project (Bohol)

19.6MWdc San Jose Solar Power Project (Nueva Ecija)

25MWdc Bugallon Solar Power Project (Pangasinan)

44MWdc Limbauan Solar Power Project (Isabela)

RE Projects in the Pipeline

2000 MW Northern Luzon Offshore Wind (Ilocos Norte)

1000 MW Northern Mindoro Offshore Wind (Occidental Mindoro)

500-1000MW East Panay Offshore Wind (Iloilo)

10MW San Vicente Wind Power Project – Hybrid (San Vicente, Palawan)

For RE facilities total of 138MW operating capacity and 3,639MW for projects under development and in the pipeline

Board of Directors IV.