PXP Energy cuts losses

MANILA, Philippines — Listed upstream oil and gas company PXP Energy Corp. recorded a  lower net loss in the nine months ending September due to higher profit from Service Contract (SC) 14C-1 Galoc operations and reduction in general and administrative expenses.

PXP said its core net loss dropped to P14.7 million in the first nine months from P20.2 million   in the same period last year.

Consolidated net loss attributable to equity holders of the parent company, meanwhile, went down significantly to P25.3 million from last year’s P1.68 billion due to impairment in Peru Block Z-38 in 2021.

Despite lower crude offtake due to higher average crude price in SC 14C-1 Galoc, PXP’s petroleum revenues still rose by 15.7 percent to P49.3 million  compared to P42.6 million in the three quarters of 2021.

The company’s consolidated costs and expenses during the nine-month period declined by 31.6 percent year-on-year to P65.6 million brought about by a significant reduction in general and administrative expenses.

Petroleum production costs in SC 14C-1 Galoc, meanwhile, remained flat year-on-year at P28.4 million.

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

The Department of Energy (DOE) last Oct. 11 granted the declaration of force majeure for SC 75 and SC 72 from April 6, 2022 until such time as the same is lifted by the agency.

The DOE also granted the inclusion of total expenses incurred as a result of the agency’s directive to suspend activities as part of the approved recoverable costs, subject to DOE audit.

PXP and Forum will likewise be entitled to an extension of the exploration period under SC 75 and SC 72 corresponding to the number of days that the contractors actually spent in preparation for the activities that were suspended by the DOE’s suspension order.

PXP and Forum received last April 6 a directive from the DOE to “put all on hold all exploration activities for SC 75 and SC 72 until such time that the Security, Justice and Peace Coordinating Cluster (SJPCC) has issued the necessary clearance to proceed.”

PXP holds 50 percent interest in SC 75 located in Northwest Palawan.

Forum Energy Ltd, in which PXP holds a direct and indirect interest of 79.13 percent, has a 70 percent participating interest in SC 72, also in Northwest Palawan, through its wholly-owned subsidiary Forum.

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