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PUBLICLY
listed Philippine National Oil Co.-Energy Development
Corp. (PNOC-EDC) reported Tuesday that net income for
the first six months increased on the back of a strong
peso and improved recurring income.
In a
statement, the company, also known as PNOC-EDC, said its
net income in the first semester reached rose P4.2
billion, up 109 percent from P2.0 billion a year
earlier.
“The
significant appreciation of the peso against the dollar
also contributed to the company’s improved profitability
as this has effectively lowered associated costs for the
remaining active Build, Operate, Transfer contracts and
for the company’s foreign loans,” the company added.
The
PNOC-EDC said that its recurring net- income increased 9
percent to P2.8 billion, from P2.5 billion in the same
comparable period. The company booked foreign exchange
gains of P2.4 billion.
The
PNOC-EDC also attributed its net income to cost savings
brought about by the completion of
build-operate-transfer contract for the Upper Mahiao
power plant
Net
sales dropped 4 percent to P10.3 billion from P10.7
billion, due to a lower average electricity price for
PNOC-EDC’s
Leyte and
Mindanao projects, as the significant appreciation of peso against
the dollar negated increases due to local and
US
indices.
The
PNOC-EDC also reported higher sales of drilling services
to Lihir Gold Ltd., which showed a 33-percent increase
from P254.8 million to P339.7 million.
A
successful initial public offering last December diluted
government shareholding in PNOC-EDC to 60 percent of
shares outstanding, while the sell down of 3 billion
shares by parent PNOC last July 9 further reduced state
holdings in the company to 47 percent.
Last
July 25, the PNOC-EDC assumed operations of the
232.5-megawatt (MW) Malitbog and 180-MW Mahanagdong A
and B power plants after their 10-year
build-operate-transfer agreements came to an end.
CalEnergy International Ltd operated the geothermal
plants in the island province of Leyte. |
