PXP Energy cuts loss to P6 million in H1

MANILA, Philippines — Listed upstream oil and gas company PXP Energy Corp. has significantly slashed its net loss in the first half to P6.4 million on the back of higher profit from the Galoc operations.

In a disclosure to the Philippine Stock Exchange, PXP Energy core net loss declined to P2.1 million from P22.2 million in the same period last year.

These improvements were a result of higher profit from Service Contract (SC) 14C-1 Galoc operations and reduction in general and administrative expenses.

Consolidated petroleum revenues during the six-month period surged by 130 percent to P45.1 million from last year’s P19.6 million.

Costs and expenses, meanwhile, dropped by 13.2 percent to P47.3 million.

Lower general and administrative expenses of P23.7 million offset the P23.6 million worth of petroleum production costs in SC 14C-1 Galoc.

PXP Energy said it would continue to coordinate with the government on the resumption of activities in both SC 75 and SC 72.

SC 72 is operated by Forum GSEC 101 Ltd., a 79.13-percent subsidiary of PXP Energy’s unit Forum Energy Ltd.

PXP has a total economic interest of 54.36 percent in SC 72.

SC 75 in northwest Palawan, on the other hand, is directly operated by PXP Energy with a 50 percent participating interest.

Last April, the Department of Energy (DOE) suspended activities in prospects in the West Philippine Sea pending clearance from the Security, Justice and Peace Coordinating Cluster.

In compliance with the directive, PXP Energy and Forum suspended all activities in both SCs.

Meanwhile, PXP Energy said the group would continue to pursue exploration work with respect to its other projects in the Philippines, including SC 40 and SC 74.

PXP Energy is looking to do a seismic reprocessing following the recommendation from a quantitative interpretation study for SC 74, or the Linapacan block in northwest Palawan.

SC 40, or the North Cebu Block, on the other hand, is located in the Visayan Basin, which the DOE considers as among the most prospective in the country next to the Northwest Palawan Basin.

Forum Exploration Inc., a 66.67 percent subsidiary of Forum, is doing a study which involves depth modeling and identification of gravity prospects and leads.