PNOC-EC income surges 55%

MANILA, Philippines - PNOC-Exploration Corp. (EC), the oil and gas exploration arm of state- owned Philippine National Oil Co. (PNOC), reported yesterday a net income of P2.5 billion in the nine months to September this year, up 55 percent from P1.7 billion in the same period in 2010.

In a disclosure to the Philippine Stock Exchange the company said the increase in earnings is attributed to the improved operations of the company’s commercial port, the Energy Supply Base (ESB), in Mabini, Batangas.

PNOC-EC chairman Gemiliano Lopez Jr. said from total sales of P440 million, PNOC-EC’s ESB revenues rose 220 percent to P1.4 billion over the same period as a result of “fiscal prudence and corporate responsibility.”

Lopez said PNOC-EC’s other businesses, particularly its 10 percent share in the Malampaya natural gas field and its coal trading activities, generated higher revenues compared with last year on account of an increase in prices this year.

PNOC owned some 99.78 percent of PNOC-EC while the remaining 0.22 percent is held by public shareholders.

This year, the company has declared over P5 billion in dividends, of which government received P4.9 billion and other shareholders got P10 million.

To further improve the company’s earnings, Lopez said that they will undertake several power projects in the provinces of Isabela and Zamboanga Sibugay.

He said they would also explore for petroleum reserves in various parts of the country; and start coal production in Zamboanga Sibugay next year.

 “In the remaining months of this year and in the years to come, we will intensify our efforts in fulfilling our company’s primary mandate -the exploration of petroleum and coal resources in order to secure a stable and bigger supply of indigenous-based energy,” he said.

The company has proposed a budget of P5.25 billion this year. This includes a total capital investment of P4.55 billion, P167.81 million for capital expenditures and P572.70 million for operating expenditures.

The PNOC-EC executive said they may also tap a standby credit facility from numerous banks of about P12 to P20 billion to fund portion of its financing requirements.