PNOC-EC expects to remit P3-B cash dividend to government coffers

MANILA, Philippines - PNOC Exploration Corp. (PNOC-EC), the oil and gas exploration arm of the state-owned Philippine National Oil Co. (PNOC), is expected to remit to some P3-billion cash dividend to the National Treasury.

The cash dividend for the year 2010 is the biggest to be declared by any government corporation thus far.

As this developed, PNOC-EC is set to send out invitations to bid for potential interested parties on the company’s shares offering.

PNOC-EC informed the Philippine Stock Exchange (PSE) that its board of directors had already given the go signal for the company to start the preparations for its public offering.

Gemiliano C. Lopez Jr., PNOC-EC chairman and chief executive officer, said the process for the hiring of the company’s financial advisor/lead underwriter is already in full swing and the invitations for interested and potential parties will be sent out in the next couple of days.

As a publicly listed company, PNOC-EC, a subsidiary of the government-owned PNOC, is required to have a public float of at least 10 percent of its shares of stock. At present, the government owns 99.71 percent of PNOC-EC shares, and the public owns 0.29 percent.

Lopez said it would take from six to eight months for the preparation of documents from the start up to the end of the float.

He said leading international banks have manifested interest in managing the float in the world market.

“We hope to ensure the best price for the offering,” said Lopez.

He said that the board has not fixed the actual date for its float. “Timing is important. We would like to assure everyone that the best conditions will be obtained for the offering so that our company will get the best and highest price possible in the global market,” Lopez added.

“Aside from complying with PSE requirements by making the offering, PNOC-EC will boost its capitalization, enabling it to enhance its capability to discover and develop more indigenous energy resources, like oil, coal and gas,” Lopez said.

The reiterated that, “Our aim is to make our country more energy self-sufficient, thus stabilizing and rendering more reasonable the price of energy in our country. This would make our local industries and transport more competitive and profitable, thus providing more employment and income for our people.”

President Aquino is scheduled to be the guest of honor and principal speaker of PNOC-EC during its 35th founding anniversary celebrations on April 15, 2011 to be held at the agency’s offices at Energy Center, Fort Bonifacio, Taguig City. Other principal guests are Energy Secretary Jose Rene D. Almendras and Finance Secretary Cesar Purisima.