Investing Stocks in Philippines: Natural gas

Showing posts with label Natural gas. Show all posts

Friday, May 18, 2012

Stock News 2012: First Gen to conclude buyout of joint venture partner this year

GE H series power generation gas turbine: in combined cycle configuration, this 480-megawatt unit has a rated thermal efficiency of 60%. (Photo credit: Wikipedia)
First Gen Corp., the power generation unit of the Lopez Group, said it hopes to conclude this year the buyout of its British partner in a natural gas power generation venture.

A full ownership of First Gas Power Corp. will increase the attributable generating capacity of the company, top company executives said yesterday.

“Hopefully we can conclude it soon,” said First Gen Corp. chairman and chief executive Federico R. Lopez. “Hopefully even within the first half.”

British Gas Group, which is publicly listed on the London and New York Stock Exchange, owns 40 percent of First Gas, with the majority stake held by First Gen.

First Gas owns and operates the 1,000-megawatt (MW) Santa Rita combined-cycle natural gas-fired power plant and the 500-MW San Lorenzo natural gas power plant, both in Batangas.

The 40-percent stake was worth $400 million in 2010.

The pricing, along with other terms and conditions, is currently being negotiated by both parties, First Gen chief finance officer Emmanuel Singson said.

“What is nice with it is if we come to a deal, it is just like acquiring another 600 MW but it will not contribute to caps [on generating capacity],” Lopez said.

The Energy Regulatory Commission sets the capacity limits of power generators based on the prescribed market share per grid and on a national level.

To date, First Gen and its units have a gross generating capacity of 2,763 MW, of which 1,500 MW is natural gas, 1,129 MW is geothermal and 134 MW is hydropower. It accounts for 18 percent of the country’s total installed power generation capacity.

Lopez said the company still has a leeway to increase capacity by another 1,700 MW.

http://www.philstar.com/Article.aspx?articleId=808343&publicationSubCategoryId=66

Stock News 2012: First Gen looks to triple profit

Inauguration of the new Yerevan natural gas-fired thermal power plant Հայերեն: Նախագահ Սերժ Սարգսյանը ապրիլի 21-ին ներկա է գտնվել Երեւանի համակցված շոգեգազային ցիկլով էլեկտրակայանի բացման արարողությանը: (Photo credit: Wikipedia)
First Gen Corp., the power generation firm of the Lopez Group, is looking at a three-fold growth in profit this year, driven by higher electricity sales from its subsidiaries.

The energy firm is ready to invest in new projects and expand its ownership in existing units, its top executives said.

“We are already in triple-digit growth...I think this year we will be able to continue that momentum,” said First Gen president and chief operating officer Francis Giles B. Puno.

For the first quarter alone, the company already posted a 171-percent jump in profit to $52.1 million from $19.2 million a year ago.

Puno added that the company is targeting to triple its earnings this year, from $35 million last year.

“Analysts’ consensus is around $110 million [in net income],” First Gen executive vice-president Richard B. Tantoco said.

“That is driven by improved electricity revenues from Energy Development Corp. (EDC) and ancillary services from First Gen Hydro [Power Corp.],” Puno said.

First Gen’s net income slumped to $35 million last year from $70.2 million in the previous year amid lower income contribution from unit EDC.

Puno said that as EDC improves the operating performance of its power plants, electricity output and sales will grow.

To date, First Gen and its units have a gross generating capacity of 2,763 megawatts (MW), of which 1,500 MW is natural gas, 1,129 MW is geothermal and 134 MW is hydropower. It accounts for 18 percent of the country’s total installed power generation capacity.

Fresh funds are geared towards acquisitions, Puno said. The company has recently raised P10 billion from the sale of its perpetual preferred shares.

Specifically, Puno said the company is still interested to purchase the stake of British Gas Group in First Gas Power Corp. First Gas owns and operates the 1,000-MW Santa Rita combined-cycle natural gas-fired power plant and the 500-MW San Lorenzo natural gas power plant, both in Batangas.

For new projects, Puno said First Gen is ready to spend P16 billion for 91 MW of new generating capacity through wind and hydropower projects.

In the first quarter, First Gen’s consolidated revenues climbed 23.1 percent to $390.6 million from $317.3 million due to improved share in net earnings of its affiliates.

http://www.philstar.com/Article.aspx?articleId=807660&publicationSubCategoryId=66

Tuesday, September 21, 2010

Stock News 2010: Nido Petroleum finds major oil and gas find in Palawan

Image via Wikipedia

MANILA, Philippines - Australian oil and gas exploration company Nido Petroleum Ltd. said it has discovered a potentially big oil and gas reservoir in northwest Palawan.

In a disclosure to the Australian Stock Exchange on Tuesday, Nido said it estimated that structures at its Service Contract 58 or the West Calamian block in Palawan, could contain "over 5 billion barrels of unrisked oil in place."

The Calamian block, straddling 13,440 square kilometers, is adjacent to the Malampaya natural gas field.

"The majority of core data indicates widespread micro-seepage of liquid hydrocarbons across SC 58 based on preliminary gas chromatography results," the company said.

The oil and gas exploration company previously reported it planned to start drilling the Calamian prospect by 2012.

http://www.abs-cbnnews.com/business/09/21/10/nido-petroleum-finds-major-oil-and-gas-find-palawan

Thursday, September 9, 2010

Stock News 2010: PNOC-EC starts fund raising for $100-million coal mine-mouth project

Image via Wikipedia

MANILA, Philippines - Publicly-listed PNOC-Exploration Corp. will start raising funds for its $100-million coal mine-mouth project within the year, a company official said.

“Yes, most likely we will borrow money to fund the project,” Rolly Oliquino Jr., PNOC-EC project officer, said in a press briefing yesterday.

He said the company is also in exploratory talks with three groups which have expressed keen interest in the project. He, however, declined to identify the investor groups.

He said they would likely take in a partner for the power plant project but may opt to do the mining component on its own.

The Department of Energy awarded Coal Operating Contract (COC) 122- Isabela coal mine and power plant project to PNOC-EC in December 1997.

Oliquino said if the project pushes through, this will be the first mine-mouth project in the Philippines. PNOC-EC is also the first to develop an onshore natural gas project in Isabela province.

The PNOC-EC project will involve a progressive mining rehabilitation method (PMRM) and a construction of an initial 50-megawatt circulating fluidized bed (CFB) coal-fired power plant in a 2,000-hectare land in Isabela.

COC 122 involved nine coal blocks with total land area of 9,000 hectares, straddling portion of the city of Cauayan and the municipalities of Naguilian and Benito Soliven, but only 2,000 hectares will be developed for the project.

Robert Francisco, another PNOC-EC project officer, explained that the PMRM is the first of its kind in the Philippines which will involve staged mining of relatively smaller areas followed immediately by rehabilitation as opposed to conventional open pit mining that involves large-scale mining activities and rehabilitation works only at the end of the mine life.

Donnabelle L. Gatdula

September 9, 2010

http://www.philstar.com/Article.aspx?articleId=610235&publicationSubCategoryId=66