PXP Energy narrows net loss in 2020

By Jordeene B. Lagare – February 27, 2021
from The Manila Times

PXP Energy Corp. shrank its consolidated net loss to P76.3 million last year on lower output and decline in crude oil prices.

The Pangilinan-led company said in a disclosure on Friday that the amount was lower than 2019’s P297.2 million and consolidated petroleum revenues fell by 58.3 percent to P30.3 million from P72.5 million.

It attributed this decline to the 24-percent decrease in output following the normal decline rate in field production in Service Contract (SC) 14C-1 Galoc on three completed liftings last year, totaling 750,506 barrels, compared with the earlier 993,761.

It also blamed the 40-percent slump in the Galoc crude sale price “due to a worldwide collapse in demand in 2020 caused by the Covid-19 pandemic.”

Consolidated costs and expenses tumbled by 48.2 percent to P98.7 million from P190.6 million on the reduction in petroleum production costs and depletion in SC 14C-1 Galoc.

General and administrative expenses improved by 38.6 percent to P64.5 million from P105.1 million on account of recurring overhead dropping by 4.6 percent to P63.6 million, and a significant reduction in nonrecurring plug and abandonments costs to P900,000.

Consolidated net loss attributable to equity holders of the parent stood at P56.1 million year-on-year, while core net loss dived to P45.7 million from P79.8 million.

The provision for impairment of assets and loss on writeoff was slashed to P6.2 million from P199.1 million, related primarily to the lower-than-expected future returns in SC 14C-1 Galoc.

Meanwhile, PXP Energy and its subsidiary Forum (GSEC 101) Ltd. will take guidance from the government on fulfilling its work commitments to its two SCs.

This comes after President Rodrigo Duterte lifted the moratorium in petroleum exploration in the West Philippine Sea in October.

PXP Energy already received resume-to-work notices for SC 72 Recto Bank and SC 75 Northwest Palawan Block from the Department of Energy.

PXP Energy shares rose by 24 centavos or 2.65 percent to finish at P9.30 apiece on Friday.