Malampaya project boosts PNOC-EC 9-mo earnings

abs-cbnNEWS.com

Posted at 11/12/2010

MANILA, Philippines - The 9-month net income of the oil and gas exploration arm of state-owned Philippine National Oil Co. (PNOC) rose 18% to P1.7 billion this year from P1.4 billion in the same period last year.

PNOC Exploration Corp. (PNOC-EC) attributed the increase to higher revenues from its Malampaya gas project. It said its coal and commercial port operations also contributed to the earnings growth.

The company's revenues went up 41.5% to P7 billion in January to September. Revenues from oil and gas production reached P3.563 billion; coal operations, P3.2 billion; and port operations, P239 million.

PNOC-EC's administrative expenses, meanwhile, increased to P304 million from P269.35 million due to higher employee costs, professional and technical services incurred for the mining operations in Malangas, Zamboanga Sibugay, as well as costs incurred for the seismic expenses of various oil and gas projects.

Total assets stood at P15.15 billion as of end-September, while total liabilities went up to P3.88 billion, which includes the company's share in the drilling costs of the Malampaya Camago 2 appraisal and development well.

The company incurred short term loan of $9 million with the Land Bank of the Philippines to finance its share in the drilling.