PNOC income up 9% to P613M in 2004

State-owned Philippine National Oil Co. (PNOC) posted a net income of P612.7 million in 2004, up nine percent from P560.5 million in 2003, the country’s top energy official said.

Energy Secretary and PNOC chairman Raphael P. M. Lotilla said he expects PNOC to remit higher cash dividend to the National Government.

Under Republic Act 7656 or the Cash Dividends Law, PNOC is mandated to remit at least 50 percent of its annual net earnings to the National Government.

With P612.7 million earnings last year, PNOC remitted recently a total of P306.4 million to the National Treasury as part of the company’s 50 percent cash dividend.

"The government’s strategic investment in Petron has yielded earnings to the government as well as helped promote fair competition in the local downstream market," Lotilla said.

He added that the investment in the Malampaya natural gas project through PNOC-Exploration Co. (PNOC-EC) has also started generating earnings for the government.

The remittance comes from PNOC’s income from its operations as well as its share in oil refiner Petron Corp. The National Government, through PNOC, has a 40 percent stake in Petron.

PNOC reported that it has paid a total of P28.2 billion in cash dividends since 1980.

PNOC subsidiaries include the PNOC-Energy Development Corp., PNOC-EC, PNOC- Petrochemical Development Corp., PNOC Shipping and Transport Corp., and PNOC Development and Management Corp.