PNOC-EC board defers to eco managers on listing of additional shares

MANILA, Philippines - The board of PNOC-Exploration Corp. (PNOC-EC), the oil and gas arm of state-owned Philippine National Oil Co., has decided to seek guidance from the country’s economic managers on the listing of additional shares at the country’s bourse.

Gemiliano Lopez Jr., PNOC-EC chairman and CEO, said the company’s board has asked the economic managers to determine if they would have to proceed with the follow-on offering to meet the 10 percent requirement of the Philippine Stock Exchange (PSE).

“We have decided to defer the matter to the economic cluster. If the decision is favorable to us, then we will proceed,” Lopez said.

But he said it is the view of the company’s board to let the public own the shares of PNOC-EC.

“We would not allow the shares of PNOC Exploration to go to one investor only,” he said.

According to Lopez, it is prudent to follow the requirements of PSE.

“We will follow the law to the letter, we are a government institution. We should set an example,” he said.

The company’s follow-on offering will meet the bourse’s 10 percent minimum public float requirement by Nov. 30.

At present, PNOC-EC has listed less than one percent of its shares at the PSE. PNOC controls 99.79 percent.

Lopez said if allowed to list additional shares, the company would have additional funds for its capital expenditures.

The company has proposed a budget of P5.25 billion this year. This includes a total capital investment of P4.55 billion, P167.81 million for capital expenditures and P572.70 million for operating expenditures.

The PNOC-EC executive said they may also tap a standby credit facility from numerous banks of about P12 billion to P20 billion to fund portion of its financing requirements.