PXP Energy net loss widens on higher costs in January-March

BY LENIE LECTURA – APRIL 28, 2023
from Business Mirror

PXP Energy Corp. reported a net loss of P5.3 million in the first quarter, significantly higher than the P2.8 million recorded in the same period a year ago.

Core net loss ballooned to P6.6 million at end-March this year from P1.7 million in the same period last year.

Consolidated net loss attributable to equity holders of the parent company surged to P6.1 million from P2.7 million, resulting from lower margins from Galoc oil field operations and higher interest expense.

Petroleum revenues slightly went down to P17.9 million in the first quarter as the average crude price in Service Contract (SC) 14C-1 covering the Galoc oil field hit $81.40 per barrel from $84.10 per barrel.

Consolidated costs and expenses stood higher at P22.4 million compared with P20.4 million brought about by higher petroleum production costs in the Galoc oil field at P10.9 million.

General expenses slightly increased at P11.5 million from P11 million.

The Pangilinan-led group said it will continue to pursue exploration work with respect to its other projects in the Philippines, including SC 40 and SC 74. “We will continue to coordinate with the government on the resumption of  activities in both SC 75 and SC 72.”

It can be recalled that on March 20, the Department of Energy (DOE) affirmed that the entire period from October 14, 2020–when the Force Majeure was lifted—to April 6, 2022—when the same was re-imposed–will be credited back to SC 72 and SC 75.

“Thus, once the Force Majeure is lifted in the future, both SCs will retain the equivalent remaining terms of the respective sub-phases prior to October 14, 2020,” PXP said.

SC 75 in Recto Bank covers the Sampaguita natural gas discovery. It is operated by Forum Energy Ltd., a British upstream oil and gas company. PXP Energy owns a 79.13-percent controlling stake in Forum.

SC 75 is located in Northwest Palawan spanning 6,160 square kilometers with PXP Energy as the operator.

Last month, the DOE granted PXP’s request to place SC 74 under a technical moratorium for the period September 13, 2022 to September 13, 2024 to enable PXP and its joint venture partners to undertake further studies and establish the appropriate technology needed to increase the production rate and recoverable reserves from the Linapacan B Field that will warrant economically viable production.