PNOC-EC profit up 52% in H1

MANILA, Philippines—PNOC Exploration Corp., the coal and upstream oil arm of the state-run Philippine National Oil Co., posted a 52-percent growth in net income to P1.52 billion in the first six months from P999 million a year ago.

In a filing with the Philippine Stock Exchange, PNOC-EC said the increase was boosted primarily by the jump in average gas and condensate prices, higher gas off-take and condensate lifting and in the bunkering services rendered in the first semester.

PNOC-EC also reported that its revenues rose 7.5 percent to P4.86 billion from the previous year’s P4.52 billion given the increase in revenues of its three major businesses, namely the Malampaya gas project, its coal trading business and the energy supply base business at the company’s Batangas port.

Helping shore up earnings was the 18.4-percent decline in PNOC-EC’s cost of sales, given the lower volumes of coal sold this year.

According to PNOC EC, the Malampaya deepwater gas-to-power project off Palawan continued to provide the fuel requirement of its power plant customers, with the total off-take reaching 69.09 billion cubic feet as of end-June this year.

The Malampaya, in which PNOC-EC holds a 10-percent stake, currently provides natural gas to three facilities—the 1,200-megawatt Ilijan plant of Korea Electric Power Corp., 1,000-MW Sta. Rita complex and 500-MW San Lorenzo plant, all in Batangas. The power generated by the Malampaya-fueled plants comprises 40 to 50 percent of the electricity generated in Luzon.

In petroleum exploration, the PNOC-EC conducted geologic fieldwork and peer review of the proposed drilling target in Service Contract 37 in Cagayan. Further studies on the hydrocarbon source were also initiated during the period to address potential associated risks.

PNOC-EC also continued with the seismic interpretation in SC 43 within the Ragay Gulf, SC 47 in offshore Mindoro and SC 58 within the West Calamian area.