PNCC sees end to 30 years of continued losses

After 30 years of massive losses, Philippine National Construction Corp. (PNCC) is eyeing a net income of P200 million by 2007 as it undergoes corporate restructuring aimed at trimming debt.

PNCC spokeperson Maridel Tacardon said the reversal of the company’s losses is premised on the success of the reorganization plan’s implementation.

The projected financial turnaround will be achieved by a combination of decisive measures in total corporate restructuring, particularly reduction of debt, resolution of long standing legal cases, drastic right sizing of the organization, and reduction in corporate expenses.

"This financial turnaround will benefit not only the National Government and the government corporations which own 90 percent of the company, but also approximately 5,000 public shareholders, which will bring PNCC back into good standing as a publicly-listed company, " PNCC said in a statement.

Last year, PNCC incurred a net loss of P2.09 billion based on the audited report by the Commission on Audit.

Records showed PNCC owes the Philippine National Bank some P2.4 billion, the interest of which has resulted in audited net losses. PNCC is now in an advanced state of negotiations with PNB to finally resolve six years of arrearages. The settlement will result in substantial reduction in debt and interest charges.

The PNCC has also asked the Supreme Court for an approval of its settlement with Radstock stemming from a lower court’s decision to award Radstock P13 billion in 2002 plus interest. In addition to this, PNCC has proposed a long term restructuring of its P5.6-billion obligation to the Bureau of Treasury.

PNCC is currently requesting Congress for a 25-year extension of its franchise to develop more tollroads and arterial linkages from Carmen, Pangasinan to Lucena, Quezon.