PXP Energy cuts losses as Galoc operations improve

ALL SYSTEMS GO With the resumption of exploration activities, the firm expects better financial results. —CONTRIBUTED PHOTO

Pangilinan-led PXP Energy Corp. pared down its net loss to P22 million in 2022 from P32.5 million last year on the back of improved Galoc oil field operations and reduced expenses.

In a disclosure on Thursday, PXP Energy said consolidated net loss attributable to equity holders of the parent firm declined to P32.3 million against P1.7 billion “due to one-time impairment and decommissioning charges incurred in 2021.”

Consolidated petroleum revenues climbed by 15.4 percent to P74.1 million from P64.2 million.

In the previous year, the company’s crude oil offtake declined to 479,955 barrels from 631,948 barrels.

Also, the average crude price in Service Contract (SC) 14C-1 covering the Galoc oil field hit $94.49 per barrel from $70.46 per barrel.

Consolidated costs and expenses dropped by 3 percent to P99.6 million from P102.7 million. General and administrative expenses decreased to P59.1 million while petroleum production costs in the Galoc area remained flat at P40.5 million.

PXP Energy will continue coordinating with the government to resume exploration activities in both SC 75 and 72.

With this development, PXP Energy will 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.

To recall, in October last year, the Department of Energy declared a force majeure for SC 77 and 72 as the agency ordered the suspension of oil exploration activities in the West Philippine Sea last April.

SC 75 in Recto Bank covers the Sampaguita natural gas discovery and is situated close to the Malampaya gas field. It is operated by Forum Energy Ltd., a British upstream oil and gas company with focus on the Philippines. PXP Energy owns a 79.13-percent controlling stake in Forum.

Conversely, SC 75 is located in Northwest Palawan spanning 6,160 square kilometers with PXP Energy as the operator.

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

SC 40 or the North Cebu Block is located in the Visayan Basin, spanning the northern part of Cebu Island.