Malampaya earnings boost PNOC-EC profit to P2.8B

PNOC-EC, the oil and gas exploration subsidiary of state-run Philippine National Oil Co. (PNOC), posted a sharp 450 percent increase in its audited net income amounting to P2.8 billion in 2005.

The company said the profit surge can be attributed mainly to its share in earnings of the Malampaya deepwater gas-to-power project brought about by high oil and gas prices and increased production volume.

PNOC-EC holds a 10 percent stake in the Malampaya project. The rest of the consortium are major operators Shell Philippines Exploration B.V. and Chevron, which have a 45 percent stake each.

The Malampaya project provides the country with at least 2,700 megawatts of clean power to its three power plant customers in Batangas- Sta. Rita, San Lorenzo and Ilijan.

With its increased profit take, the company said it is set to release dividends totaling to P20 million to its stockholders.

At present, PNOC-EC’s shares of stock are 99.78 percent owned by the Philippine government through its mother company PNOC, while the remaining 0.22 percent is held by public stockholders.

PNOC-EC’s unrestricted retained earnings, taking into account the deficits in the previous year, only amounted to about P40 million, from which 50 percent will be released as dividends.

The last time the company released dividends to its stockholders was in 1999, which amounted to only P2 million.

The company continues its search for sustainable and indigenous energy sources in the country. Currently, PNOC-EC focuses its upstream exploration efforts in South Cagayan, Ragay Gulf, and offshore Mindoro. The company is also gearing for service contracts in North Calamian and West Balabac, both in offshore Palawan.