PNOC Exploration Corp., the upstream oil and coal arm of state-run Philippine National Oil Co., said it was expecting to post P3 billion in net income for 2011, which could be attributed to efforts to increase revenue and reduce operational expenses.
In a briefing Thursday, PNOC-EC chairman and CEO Gemiliano Lopez Jr. said the projected profit exceeded the company’s initial net income estimate of P2 billion and the P2.42 billion actual net income recorded in 2010.
The robust performance of PNOC-EC—which can be traced to its gains from the Malampaya gas-to-power project, coal trading and integrated services and Energy Supply Base business—allowed the company to remit to the Treasury P5 billion in dividends, said to be the biggest profit contribution among government-owned and -controlled corporations.
Its healthy balance sheet will allow PNOC-EC to undertake new ventures for this year. One of the priority projects for 2012 is its plan to re-enter the large-scale coal trading and marketing business.
PNOC-EC will likewise pursue its plan to construct two 100-megawatt mine mouth coal-fired power plants in Isabela and Zamboanga Sibugay, estimated to be worth a total of $400 million, or about P17.2 billion.
The power plants will be built near the coal mines operated by the company, which will eliminate some of the company’s costs including freight or transport expenses. With the savings, the two PNOC-EC facilities are expected to provide cheaper electricity not only to the mine facilities but also to the surrounding communities.
Another project that PNOC-EC targets to start next year is the construction of an P18.32-million compressed natural gas (CNG) refilling station in Batangas City, which is targeted to jumpstart the CNG bus project of the Department of Energy under the Sustainable Fuels for Transport Program. Through this program, the government is eyeing to have 1,000 CNG-fueled buses and nine refilling stations to support these vehicles by 2014.
PNOC-EC is now preparing for the eventual government takeover of the two existing mother and daughter refilling CNG stations, which are both owned by Shell Companies in the Philippines.
PNOC-EC had said it already earmarked P400 million for the necessary facilities that would help boost government programs to promote the use of natural gas, including the P18.32-million CNG refilling station in Batangas City.—Amy R. Remo