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THE
government targets to issue a third of its remaining
shares at the Philippine National Oil Co.-Energy
Development Corp. (PNOC-EDC) to the public as its bid to
privatize its stake in the government-run oil company’s
geothermal arm within the year.
“With
the three billion of nine billion common shares and the
7.5-billion preferred shares planned to be issued to the
market within the year, 53-percent of the company will
be privately-owned,” Paul A. Aquino, the company’s
president and chief executive, told reporters at the
sidelines of its annual stockholders meeting.
At
present, Aquino said, six billion common shares have
already been floated in the market.
The
increase in capital stock by way of creation of
preferred shares will enable the company to carry out a
further privatization exercise by allowing the public,
both foreign and domestic investors, to acquire more
shares in the company, while ensuring that the company
remains a Philippine national firm upon completion of
the offering in a manner that is least dilutive, fastest
to execute and most economical.
With the
planned sale of 7.5-billion preferred shares, Aquino
stressed that the sale of such shares will ensure that
the PNOC-EDC will still be a wholly owned Filipino
company.
Section
2 of Article XII of the 1987 Constitution mandates that
all lands of the public domain, waters, minerals, coal,
petroleum, and other mineral oils, all forces of
potential energy, fisheries, forest or timber, wildlife,
flora and fauna, and other natural resources are owned
by the State.
With the
exception of agricultural lands, all other natural
resources shall not be alienated. The exploration,
development and utilization of natural resources shall
be under the full control and supervision of the State.
The
State may directly undertake such activities, or it may
enter into coproduction, joint venture, or
production-sharing agreements with Filipino citizens, or
corporations or associations at least sixty per centum
of whose capital is owned by such citizens.
In
another development, PNOC-EDC posted a recurring net
income of P1.3 billion for the first quarter of 2007,
five percent higher than the amount posted for the same
period in 2006. The increase is largely due to the
reduction of build-operate-transfer (BOT) fees.
Net
sales for the period ending March 31, 2007 decreased by
P192.8 million, or 4 percent, to P5.1 billion from P5.2
billion during the same period last year. This was
brought about by the strengthening of the peso, which
lowered selling prices for electricity sales.
Cost of
sales decreased by P93.5 million in the first quarter of
2007 to P2.37 billion from P2.46 billion for the same
period in 2006, also due to the appreciation of the
peso against the US dollar in the first quarter this
year and lower BOT fees.
“It is
worth noting, however, that while the appreciation of
the peso against the US dollar has the effect of
lowering our selling prices, it also reduces peso value
of our foreign currency-denominated obligations,” Aquino
said.
The
unaudited financial statements also showed that cash and
cash equivalents for March 2007 are significantly higher
at P6.38 billion, or 133 percent higher than the March
31, 2006 level of P2.73 billion.
Aquino
also announced that PNOC- EDC plans to develop an
additional 350 MW of geothermal power. “We will pursue
the optimization of Nasulo and Mindanao III projects;
explore new steam fields in Southern Leyte, Dauin in
Negros Oriental, and Tanawon, Rangas and Kayabon in
Bicol,” Aquino said. |
