PNOC-EC eyeing double digit 2011 profit growth

Manila Times.net
Published : Saturday, January 07, 2012 00:00 Written by : Euan Paulo C. Añonuevo


PHILIPPINE National Oil Co.-Exploration Corp. (PNOC-EC) expects profits to grow by nearly a quarter last year compared with 2010.
Gemiliano Lopez Jr., PNOC-EC chairman, said that the company should pocket P3 billion in earnings in 2011, up 24 percent from the P2.4 billion in 2010.


The official attributed the projected increase in net income to higher revenues and reduced expenses.


“We’re working hard to reduce expenses through efficiency,” he added.


PNOC-EC is the petroleum and coal subsidiary of state-owned PNOC. The company historically generates bulk of its revenues from a 10-percent share in the Malampaya field, the country’s largest natural gas producer.


Last year, however, PNOC-EC posted significant gains from its commercial port in Mabini, Batangas, whose total revenue rose to P1.41 billion for the nine-month period of 2011 alone compared to P440 million year-on-year.


For 2012, the company plans to undertake several coalmines and power projects in the province of Isabela and Zamboanga Sibugay; and explore for petroleum reserves in various parts of the country to further boost its bottom line performance.


Lopez said that PNOC-EC will also re-enter the coal trading market as soon as rules and regulations are tightened to prevent possible market losses because of irregularities, market and other economic factors.


PNOC-EC suspended its trading activity in the past because of financial losses arising from lax and irregular trading.


The company, meanwhile, allocated P400 million for the compressed natural gas project of the Department of Energy to complement Pilipinas Shell Petroleum Corp.’s Mamplasan CNG station, which PNOC-EC is set to take over this year.


The PNOC-EC chief said that the amount will be used to put up CNG distribution infrastructure that will supply natural gas to some 1,000 buses operating in Metro Manila.