By Neil Jerome C. Morales (The Philippine Star) Updated October 22, 2012 12:00 AM
MANILA, Philippines - State-led Philippine National Oil Co.-Exploration Corp. (PNOC-EC) is looking at resuming its coal importation and trading operations next year.
Coal importation is still a profitable venture without corruption, an executive said.
“There is no reason for us not to revive (coal importation). PNOC-EC is making money in the importation and trading,” said PNOC-EC chairman Gemiliano Lopez, Jr.
Lopez said PNOC-EC has reviewed its rules and it has already created new guidelines for the importation business.
Last year, the company suspended its coal importation and trading business to review its operations.
In an internal audit, the PNOC-EC found out that the company lost more than P120 million in a single coal transaction in 2009.
If the new guidelines are put in place, Lopez said PNOC-EC can resume coal importation as early as next year.
Crismel Verano, former acting chairman of PNOC-EC earlier filed a plunder case at the Ombudsman against PNOC president Antonio Cailao and other senior officials. It claimed that the officials engaged in $10-million worth of shady coal deals from March 2009 to January 2010.
The rules will make sure that there will be reshuffling of officials and Indonesian firms cannot engage in fraudulent transactions, Lopez said.
Local miners are producing only seven million metric tons (MT) of coal per year, not enough to support the nation’s annual demand of 12 million MT, data from the Energy department showed.
Of the country’s production, three million MT are sold abroad, prompting power generators and cement plants to buy coal in countries like Indonesia.
Meanwhile, the state-led firm plans to raise around P10 billion in a share sale in January or February next year instead of an earlier target of December.
“The share sale will be held in] January or February. But I think we are lucky because even in Jan. or Feb., valuations will remain high,” Lopez said.
PNOC-EC is planning to sell roughly 218 million new shares to comply with the PDE’s requirement of 10 percent minimum public float.
To date, the state-led firm has a public float of only 0.21 percent or 4.47 million shares held by the public.
A PNOC-EC source said the company can generate P7-10 billion through the share sale.
The source added that the company is hoping to attract the Lopez, Aboitiz, San Miguel and Pangilinan groups for a potential block sale. source
Coal importation is still a profitable venture without corruption, an executive said.
“There is no reason for us not to revive (coal importation). PNOC-EC is making money in the importation and trading,” said PNOC-EC chairman Gemiliano Lopez, Jr.
Lopez said PNOC-EC has reviewed its rules and it has already created new guidelines for the importation business.
Last year, the company suspended its coal importation and trading business to review its operations.
In an internal audit, the PNOC-EC found out that the company lost more than P120 million in a single coal transaction in 2009.
If the new guidelines are put in place, Lopez said PNOC-EC can resume coal importation as early as next year.
Crismel Verano, former acting chairman of PNOC-EC earlier filed a plunder case at the Ombudsman against PNOC president Antonio Cailao and other senior officials. It claimed that the officials engaged in $10-million worth of shady coal deals from March 2009 to January 2010.
The rules will make sure that there will be reshuffling of officials and Indonesian firms cannot engage in fraudulent transactions, Lopez said.
Local miners are producing only seven million metric tons (MT) of coal per year, not enough to support the nation’s annual demand of 12 million MT, data from the Energy department showed.
Of the country’s production, three million MT are sold abroad, prompting power generators and cement plants to buy coal in countries like Indonesia.
Meanwhile, the state-led firm plans to raise around P10 billion in a share sale in January or February next year instead of an earlier target of December.
“The share sale will be held in] January or February. But I think we are lucky because even in Jan. or Feb., valuations will remain high,” Lopez said.
PNOC-EC is planning to sell roughly 218 million new shares to comply with the PDE’s requirement of 10 percent minimum public float.
To date, the state-led firm has a public float of only 0.21 percent or 4.47 million shares held by the public.
A PNOC-EC source said the company can generate P7-10 billion through the share sale.
The source added that the company is hoping to attract the Lopez, Aboitiz, San Miguel and Pangilinan groups for a potential block sale. source
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