Philex Petroleum Corp., led by businessman Manuel V. Pangilinan, posted a net loss of P1.09 billion last year, a reversal of the P537 million in net income registered in 2011.
In a disclosure to the Philippine Stock Exchange Friday, Philex Petroleum explained that the losses were due to the write-down of investments in Forum Energy Plc’s Service Contract 40 in Cebu and Brixton Energy and Mining Corp.’s coal operating contract 130 in Zamboanga Sibugay.
Philex holds a total direct and indirect interest of 60.49 percent in Forum Energy, while Brixton Energy is a wholly-owned subsidiary.
“The net loss for the year is mainly due to a P388.63-million write-down of the investment made in SC 40 (participating interest through Forum Energy), and a write-down of P578.25 million of the assets in Brixton,” it said.
Revenues from the company’s petroleum business in Forum Energy amounted to P191 million last year while revenue from coal operations in Brixton stood at P48.03 million.
Philex Petroleum added that it intended to pursue its exploration program within the highly prospective Recto Bank, covered by Service Contract 72. The block covered by the service contract reportedly contains an estimated unrisked gas potential of up to 16 trillion cubic feet, which, if proven, could provide gas supply to the country for 100 years.
“We will continue to focus on our goal of proving the commerciality of the potential hydrocarbon resources in the SC 72 contract area located at the Recto Bank. However, in pursuing such goal, we appreciate the significant challenges arising from the location of SC 72, for which the continued support of the Philippine government remains a critical factor,” said Pangilinan, chair and CEO of Philex Petroleum.
In a separate disclosure, Philex Petroleum reported that it unloaded its shares in another publicly listed power firm, PetroEnergy Resources Corp.
Philex said it sold 28.2 million shares of stock of PetroEnergy to RCBC Securities Inc. for its clients at a slight discount to the quoted market price.
“Following the sale, Philex Petroleum does not hold any shares of stock of [PetroEnergy],” the company said. It did not disclose the reason for selling these shares.