PNOC EXPLORATION Corp., the upstream oil and coal exploration arm of the state-run Philippine National Oil Co., will pay cash dividends amounting to P2 billion to stockholders by the end of the month.
The latest cash dividend declaration was on top of the P3 billion given earlier this year, thus bringing total cash dividends to P5 billion.
The government, through PNOC, is getting the lion’s share of the dividends since it owns 99.79 percent of PNOC EC’s shares of stock, which means the government’s share in the P2-billion cash dividend will likely be P1.99 billion. The rest of the shares are held by the public.
PNOC EC will pay out the cash dividend of P1 a share on July 28 this year to all stockholders of record as of July 26, the company said in a disclosure to the Philippine Stock Exchange.
In a separate disclosure, PNOC EC also reported that it planned to invest an initial P1.35 billion to explore and develop highly prospective coal mines in Zamboanga Sibugay after its board of directors gave the green light to implement the Lower Butong development project and to proceed with the Sta. Barbara exploration project.
For the Lower Butong project, PNOC EC will be allocating P600 million for the initial investment costs, which will include materials and equipment, development cost and manpower requirements. Another P750 million will be earmarked for the Sta. Barbara exploration project.
“[The two projects] are being undertaken pursuant to PNOC EC’s Coal Operating Contract (COC) No. 41 with the Department of Energy, which covers municipalities in the province of Zamboanga Sibugay,” PNOC EC said.
“The Lower Butong project and the Sta. Barbara exploration project, together with the Lumbog Coal project, which is also undertaken pursuant to COC 41, aim to accelerate the coal activities of PNOC EC,” the company added.
The projects, which are expected to boost PNOC EC’s current production from its mining operations, were among the priority activities programmed within the next five years for COC 41. All these programs are aimed at increasing the coal reserve inventory to sustain the fuel requirements of the planned 50-megawatt power plant in the area.
Last April, the PNOC EC board also approved a special budget of close to P900 million to further develop and expand the Lumbog coal mine, also in Zamboanga Sibugay, as this area was said to produce the highest grade of coal quality in the country.
The P900 million would be used to help double the Lumbog coal mine’s annual production to 500,000 metric tons of steaming coal by 2012.