PNOC-EC hikes profit by 46% to P1.463 B in H1

Publicly-listed PNOC-Exploration Corp. increased its net income by 46 percent to P1.463 billion in the first half of 2008 from P1 billion in the same period last year. 

The company attributed the improvement in earnings to the increase in revenues from the Malampaya deep water gas-to-power project, coal operations and its energy supply base (ESB).

PNOC-EC disclosed to the Philippine Stock Exchange (PSE) that it also reduced its financing costs, including interest expense, by 81 percent, triggered by the partial payment on the Malampaya loan from $85 million as of June 2007 to $20.47 million as of June 2008. 

About two percent of PNOC-EC’s shares are listed at the stock market. The company is looking at a follow-on offering this year as part of its privatization plan.

Gross revenues stood at P4.251 billion for the period, up 29 percent from P3.296 billion a year ago.

Revenues consisted of P2.9 billion from its share of proceeds from Service Contract (SC) 38 or the Malampaya project, P1.17 billion from coal project operations, P151.97 million from the ESB, which serves as the docking storage and warehousing needs of various oil and energy related companies and P22.59 million from the San Antonio gas project.

“The increment was primarily attributable to the continuous increase in the selling price of gas and condensate and the higher volume of coal sold for the current year,” PNOC-EC said.

Meanwhile, total liabilities went down to P4.05 billion from the  yearend 2007 balance of P5.19 billion due to partial principal payments of the Malampaya loan. 

PNOC-EC’s planned privatization will help generate funds to fund its various projects such as the Camago-Malampaya Oil Leg (also known as the Malampaya oil rim), oil and gas exploration in offshore Mindoro and Ragay Gulf, local and overseas exploration projects, natural gas downstream infrastructure projects, a coal project in Indonesia and the coal mine-mouth power plant project in Isabela. – Donnabelle Gatdula