The government decided to dissolve the shipping unit of the Philippine National Oil Co., which suffered heavy losses after it lost the contract to transport oil for Petron Corp., its biggest customer.
“It’s losing heavily and there is no reason for it to exist. It was primarily used to service Petron when it was still government-owned,” Energy Secretary Carlos Jericho Petilla said, referring to PNOC Shipping and Transport Corp.
PNOC issued a notice of dissolution of PNOC Shipping effective March 15. The PNOC board and Petilla approved the dissolution.
“Notice is hereby given that PNOC Shipping and Transport Corp., a wholly-owned subsidiary of the PNOC during its special stockholders’ meeting last Feb. 7, 2013, approved the amendment of articles of incorporation on direction of shortening the existence of corporate term and thereby dissolving the corporation effect March 15,” the company said in a published notice.
An industry source said PNOC Shipping failed to bag contracts to transport oil for Petron, which was formerly owned by the government. The company had served the transport requirements of Petron for 30 years.
“They are financially bleeding heavily. Petron allegedly with SMC help is building up a fleet of tankers that’s why PNOC Shipping has no more transport contract with Petron,” the source said.
Previous administrations wanted to privatize PNOC Shipping either through the sale of its assets or the sale of the company through an initial public offering.
The company is primarily engaged in the business of shipping, tankering, lighterage, barging, towing, transport, and shipment of goods, chattels, petroleum and other products.
Its fleet of shipping vessels includes M/T Gen. Antonio Luna, M/T Dr. Jose Rizal, M/T PNOC Lapu-Lapu and M/T PNOC Emilio Jacinto.
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