PXP Energy trims net loss on higher output of Galoc
By Lorenz S. Marasigan – November 1, 2024
from Business Mirror
PXP Energy Corp. narrowed its core net loss in January to September, citing slightly higher crude oil prices, improved production volumes from its Galoc operations, and reduced overhead costs as primary drivers.
In a disclosure to the stock exchange, PXP reported that its net loss during the period reached P17.8 million, lower than the P23.9 million the year prior.
Consolidated net loss attributable to equity holders of the parent company also fell to P16.7 million from P22.9 million in 2023.
The company’s petroleum revenues edged up by 2.8 percent to P64.8 million, compared to P63.0 million in 2023, fueled by an average crude price increase to $81.2 per barrel from last year’s $80.5 per barrel.
Production levels also rose slightly, with 478,999 barrels lifted in the Galoc oil field under Service Contract (SC) 14C-1, up from 475,183 barrels in 2023.
PXP’s consolidated costs and expenses were reduced to P78.2 million, down from P82.1 million last year, primarily due to streamlined recurring overhead costs, which dropped to P37.0 million from P41.0 million.
The company also recorded a lower net interest expense at P2.3 million, down from P3 million, though petroleum production costs grew slightly to P41.2 million.
Looking ahead, PXP expressed optimism about its potential award for the exploration blocks whose auctions it participated in.
In August, PXP, together with its partners Philodrill Corp., Sunda Energy Plc, and Triangle Energy (Global) Ltd., submitted bid documents for two Pre-Determined Area Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) Petroleum (PDA-BP) blocks, previously under SC 56 and SC 41 licenses with ExxonMobil and Tap Oil, respectively.
As the sole bidder for these blocks, the joint venture’s application has qualified for further evaluation by the Department of Energy and the Ministry of Environment, Natural Resources, and Energy of the Bangsamoro Autonomous Region in Muslim Mindanao.
It also reaffirmed its commitment to other ongoing projects, including SC 72 and SC 75, despite extended force majeure, as well as feasibility studies on SC 40’s Dalingding-2 prospect.
“PXP will continue to assess and study other oil and gas projects within the Philippines,” it said.
