Philodrill to focus on oil exploration

REPORT FROM BUSINESSWORLD Listed oil exploration firm The Philodrill Corp. plans to sell its 40% stake in an investment house in order to focus on various petroleum projects in the country. Philodrill President Alfredo C. Ramos said the company is thinking of giving up its interest in Penta Capital Investment Corp. to concentrate on its core business, and take advantage of the high oil prices. It [the possible sale of Penta Capital] is something we’re thinking about. But we need to focus on oil exploration because [the] price of oil is so high," Mr. Ramos told reporters. "Oil exploration is very expensive so if it’s necessary to sell some of the other assets to fund the exploration we will see," he added. Philodrill has just concluded selling its more than 107 million shares in property development firm Edsa Properties Holdings, Inc. to listed real estate developer Anglo Philippine Holdings Corp. for P1 each. The second tranche of 57.07 million shares of Edsa Properties Holdings, Inc. will be transacted today subject to approval of the Philippine Stock Exchange. The first tranche of 50 million Edsa Properties Holding shares was transacted last June 15. Philodrill holds a 5.08% equity investment in Edsa Properties. Edsa Properties owns 78.72% of the Shangri-La Plaza Commercial Complex, and 23.52% of KSA Realty Corp. Philodrill owns a 4.65% interest in Anglo Philippine Holdings. Anglo Philippine Holdings holds an 18.6% interest in MRT Holdings Inc. which operates the EDSA Metro Rail Transit III project, and has a 15.79% stake in MRT Development Corp., which will develop the 16-hectare North Triangle property. Penta Capital is an investment house that manages money for other people including underwriting services. Penta Capital holds equity interest in several companies such as, Penta Capital Finance Corp., a finance company and quasi-bank (98.75%-owned), Penta Capital Holdings Corp., an investment holding company (29.54%-owned), Penta Capital Realty Corp. (100%-owned) and Intra-Invest Securities, Inc. (68.47%-owned). Penta Capital posted a consolidated net income of P15.1 million in 2005 from P26.8 million in 2004, mainly due to a significant decline in fee-based income. Mr. Ramos said proceeds from the possible sale of the company’s stake in Penta Capital will be used for, among others, the exploration of and oil production from its Octon field in Northern Palawan. Aside from Palawan, Philodrill has active petroleum projects covering production and exploration areas in offshore South Sulu Sea and onshore Mindoro and Central Luzon under various service contracts and geophysical survey and exploration contracts with the government through the Energy department. -- Jeffrey O. Valisno with Ruby Anne M. Rubio/BusinessWorld