The Commission on Audit confirmed in an annual audit report posted on Thursday that the PNOC Shipping and Transport Corp. (PSTC), which the government decided to dissolve last March 15, incurred P182.471 million in losses in 2011.
PSTC is a unit of the Philippine National Oil Company and it was formed mainly to service formerly state-run but now privately-owned Petron Corp..
With Petron's needs now being attended to by the shipping unit of San Miguel Corp., it current owner, PSTC no longer has a revenue stream.
But two of PSTC's tanker ships: MT PNOC Lapu-Lapu and MT PNOC Emilion Jacinto still have live time charters or contracts until 2017.
COA recommended in its audit report that PSTC management "adopt alternative courses of action to enable it to improve its revenues and continue performing its mandate in the transporting and shipping indstry."
COA did not indicate what alternatives PSTC could pursue.
PSTC revenues in 2011 were P252.577 million. Its operating loss that year hit P143.285 million while it "comprehensive loss" was P358.405 million. — ELR, GMA News