MANILA - Lower revenues and higher costs and expenses pulled down Philex Mining Corp.'s consolidated net income by 47% in the first 9 months of the year.

In a statement, Philex reported that its net income dropped to P1.7 billion in January to September 2009 from P3.3 billion in the same period last year as net operating revenue decreased to P6.3 billion from P8 billion.

Net operating revenue from copper was fell 39% at P2.8 billion from P4.6 billion, with the average realized price per pound of copper down to $2.19 from $3.32 last year.

Philex also reported that its copper production during the 9-month period was lower at 26 million pounds versus 30.6 million pounds in 2008, partly offset by lower marketing charges.

Aside from weaker revenues, the company said higher operating costs and expenses, which grew to P4.2 billion from P3.8 billion, contributed to the decrease in its net income.

Philex reported a net income before tax of P2.5 billion, down 32% from last year's P3.7 billion.

A net interest income of P55.9 million and a marked-to-market gain of P470.1 million from currency hedging contributed to the net income before tax. But these were tempered by a foreign exchange loss of P12.8 million and a lower operating income.

The provision for income tax of P771.2 million for the first 9 months this year was also higher than the P432.1 million last year as the full statutory income tax rate has become applicable with the expiration of the Philex’s income tax holiday on its Padcal operations starting January 1, 2009.

For the third quarter alone, Philex reported a net income before tax of P896.6 million, 28% lower than the P1.2 billion in the same quarter of 2008.

After the provision for income tax of P279.1 million for the quarter, net income amounted to P617.5 million.

For the 9 months to September, Philex recorded a net loss of P357.9 million from hedging, consisting of the losses of P140.6 million from gold and P245.1 million from copper, partly offset by the gain of P27.8 million from currency. This is lower than last year's net loss of P787.9 million, consisting of P112.5 million from gold, P110.0 million from copper and P565.5 million from currency.