PNOC Coal eyes turnaround

PNOC Coal Corp. (PNOC-CC), the coal subsidiary of the state-owned Philippine National Oil Co., is projecting a net income of P2 million this year, a turnaround from the net loss of P107 million in 2000.

PNOC president and chief executive officer Thelmo Y. Cunanan said the projected net income will be the first following years of losses by the company.

In 1999, Cunanan said the company incurred a net loss of P35 million which ballooned to P107 million last year.

The improved performance of PNOC-CC, Cunanan said, can be attributed to the appointment of a new management team, a manpower reduction program and a streamlining of operations.

"The losses have been reduced substantially and there is a very good chance of having it in the blue ink this year," he said.

PNOC-CC president Florante Navarro said the company incurred a net loss of P40 million for the first five months this year. But these losses were offset by gains over the past two months, he added.

In previous years, PNOC-CC incurred losses due to low margins against high overhead costs. To reduce its overhead, the company decided to implement an early retirement program for at least 41 employees last September.

At present, PNOC-CC buys coal mostly from China and Indonesia, and offers it to local cement factories and to the National Power Corp. (Napocor).

The company also operates a number of small, non-containerized ports that specialize in handling petroleum coke, coal, and gypsum. It also produces and sells briquettes.

Cunanan said they will conduct a roadshow next year in various provinces to promote the use of coal as the cheapest form of energy source.

"We have to inform the public that we now have clean coal technology. It should be acceptable to the community," Cunanan added.