PXP Energy net loss widened in H1

PXP Energy Corp. saw its net loss for the first semester balloon by more than three times, posting P56.4 million this year from the P17.9 million incurred in the same period of 2019.

The Manuel Pangilinan-led upstream petroleum firm said in a statement its performance for the first six months of the year was driven by a 66-percent drop in output blamed on the natural decline in their oil field’s production as well as a 62-percent fall in crude oil prices blamed on the new coronavirus pandemic.

PXP said first-half consolidated petroleum revenue was 88 percent lower at P61 million compared to P51.4 million previously.

The decline of production at PXP’s Galoc oil field—covered by Service Contract No. 14C-1 —cushioned this as the lower depletion cost at Galoc helped bring down consolidated cost and expenses by 47 percent to P39.5 million from P86.2 million.

The Galoc field will be shuttered starting Sept. 24 and PXP has received a notice of termination from Rubicon Offshore International, the contractor that owns the floating production storage and offloading vessel “Rubicon Intrepid.”

Also, the Department of Energy has granted a request for the imposition of a force majeure over Linapacan Block covered under SC No. 74, which PXP made based on the negative impact of the pandemic on business operations and on implementation of SC 74 work activities. INQ