PNOC-EC said the unprecedented improvement in profit was caused by high oil and gas prices and increased production volume of its Malampaya deepwater gas- to-power project.
PNOC-EC holds a 10 percent stake in the $4.5 billion Malampaya project while lead proponents Shell Exploration and Chevron each has 45 percent stake.
The company’s revenue jumped 49 percent in 2005 to almost P6.7 billion from the previous year’s P4.5 billion.
Contributing to the revenue growth are the company’s proceeds from Malampaya amounting to P5.05 billion; P1.54 billion from its coal business, P89 million from its energy supply base in Batangas; and P21 million from the San Antonio gas power plant in Isabela.
Meanwhile, PNOC-EC’s operating expenses increased by a moderate seven percent from P143 million in 2004 to P152 million in 2005. The rise in expenses last year was a result of one-time expenditures related to its manpower reduction program implemented during the period.
The company is expected to remit as much as P355 million in income taxes to the National Government, 60 percent higher than the P223 million paid the previous year.
PNOC-EC has aggressively positioned itself in the forefront of petroleum exploration in the Philippines. Its strong financial performance provides the company leverage as it pursues an intensified exploration program around the country.
Currently, the company owns stakes in various petroleum blocks in offshore Palawan, Mindoro and Ragay Gulf.
PNOC-EC is also gearing up for the development of the Camago-Malampaya oil leg.