State-run PNOC Exploration Corp. posted a net income of P1.17 in the first nine months of 2018, up 18 percent from P958.97 million year-on-year.
The company registered a profit before tax of P2.04 billion during the period from P1.529 billion a year ago.
PNOC EC recorded higher service and business revenues of P3.821 billion for the January-to-September period.
The company’s expenses, however, increased to P2.137 billion from P1.743 billion in the same period last year.
PNOC EC owns a 10-percent stake in the Malampaya gas-to-power project in northwest Palawan where it derives the bulk of revenues.
It also owns stakes in service contract 37 (Cagayan), SC 74 Northwest Palawan, SC 63 (Sabina), SC 59 (West Balabac), SC 58 (West Calamian) and SC 57 (Calamian).
The Department of Energy earlier asked PNOC EC to import lower-priced Euro 4 diesel to mitigate the impact of inflation on pump prices. PNOC EC plans to start an initial importation within the month.
PNOC EC, the oil and gas arm of state-owned Philippine National Oil Co., also started a study for the government to operate and maintain the Malampaya project once service contract 38 of the consortium expires by 2024.
the company is part of the Malampaya gas consortium, along with Shell Philippines Exploration B.V. (45 percent) and Chevron Malampaya LLC (45 percent).
The Malampaya gas field has proven reserves of 2.7 trillion cubic feet to 3.2 TCF, with over 1 TCF already consumed.
The Department of Energy has asked PNOC EC to determine if it would be commercially viable for the government to drill or extract gas from the field, which the consortium previously deemed as not commercially viable.
The DoE is studying all options regarding the Malampaya gas project, which supplies fuel to over 3,000 MW of natural gas power plants.
