PNOC Exploration Corporation, the upstream petroleum and coal arm of state-owned Philippine National Oil Company has posted a 73% increase in net income from PhP1.77 billion in 2007 to PhP3.05 billion in 2008. The increase can be attributed to the increase in revenues from the Malampaya Project and Coal Operations brought about by higher gas and coal prices in the world market.
PNOC EC’s net sales also went up to PhP8.65 billion in 2008 from PhP6.44 billion in 2007. The significant increase in 2008 performance vis-à-vis 2007 can be attributed to several factors. Firstly, revenues from Malampaya reflected a 34% increase in 2008 due to the increased gas offtake from 125,048.43 million standard cubic feet (MMscf) in 2007 to 132,006.20 MMscf in 2008. Average gas and condensate prices increased in 2008 as compared to the average gas and condensate prices in 2007. Secondly, coal trading and integrated services posted a 37% increase due to higher volume of coal sold in 2008 from 754.31 thousand metric tons in 2007 to 869.98 thousand metric tons in 2008. In addition, coal price also increased in 2008 as compared to coal price in 2007. Lastly, the boost in net income can also be attributed to lower financing costs as a consequence of the Company’s full payment of the remaining $47 million balance of the original $175 million SC 38 related loan.
On the other hand, PNOC EC’s operating expenses also increased by 24% from PhP329 million in 2007 to PhP409 million in 2008. The increase can be attributed largely to expenses relating to the Company’s exploration activities for various petroleum service contracts.
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This press release is not an offer of securities for sale in the United States or elsewhere. The shares of PNOC EC are not being registered under the US Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States unless registered under the Securities Act or pursuant to an exemption from such registration. There will be no public offering of the shares of the company in the United States.
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Contact person: Emmelyn A. de Guzman
Tel. +63(2) 840-1471 / 479-9400 (local 254)
