PNOC revisits IPO plans for shipping subsidiary

MANILA, Philippines - State-owned Philippine National Oil Co. (PNOC) is revisiting plans to undertake an initial public offering (IPO) for its subsidiary, PNOC-Shipping Corp. (PSTC), a top PNOC official said.

Energy Secretary and PNOC chairman Jose Rene Almendras said the IPO of PSTC would come as an option as the National Government has finally put in the back burner the privatization of PNOC-Exploration Corp. (PNOC-EC).

“The present decision is that Malampaya is not going to be sold. It’s not for sale. There are other PNOC subsidiaries that are gonna be offered for sale but not this one, not yet. The small ones, service ones. We are not recommending it because the upside value is very good,” Almendras said.

Almendras said the NG sees no need to privatize PNOC-EC.

On the PSTC, Almendras said the PNOC board is now reviewing the IPO of the company. “The board already decided to explore the possibility of letting go of its shipping company. You have to sell the two ships which are single hulled, so rather than just sell the ships, the board opted to, if possible, the whole company,” he said.

PNOC is also eyeing another privatization scheme for PSTC which is the direct sale of assets particularly its tankers.

PSTC is primarily engaged in the business of shipping, tankering, lighterage, barging, towing, transport, and shipment of goods, chattels, petroleum and other products, marine, and maritime commerce in general.

The company maintains more than four tankers, three of which are owned and one chartered-in tanker with capacities from 23,000 to 30,000 barrels.

Created in December 1978, PSTC operates to transport petroleum products within the country.

PSTC is envisioned to become the strategic leader in the marine transport of energy resources, through its professional team providing quality service to its customers.

It aims to be the best provider of quality tankers and allied services through: customer-centric business approach and ISO-certified quality systems and procedures.

One of PSTC’s clients is Petron Corp., the country’s largest oil refiner and also one of the subsidiaries of PNOC.

The four vessels that PSTC operates are Antonio Luna, Andres Bonifacio, General Miguel Malvar, and the Graciano Lopez Jaena.