PXP net loss widens on lower crude prices

MANILA  -Manuel Pangilinan-led PXP Energy Corp. widened its net loss to P11.2 million in the first half of the year from P6.3 million in the same period in 2022 due to higher interest expenses and lower returns from Galoc oil field operations.

In a stock exchange disclosure on Wednesday, PXP Energy said consolidated net loss attributable to equity holders of its parent firm ballooned to P12.7 million from P6.4 million.

The company’s consolidated costs and expenses also rose by 2.96 percent to P48.7 million on the back of higher petroleum production costs.

Petroleum revenues, meanwhile, declined to P39.4 million from P45.1 million. Average crude prices were lower during the period in review even as yields from service contract (SC) 14C-1, or the Galoc oil field, were higher at 301,339 barrels from 291,216 barrels.

According to PXP Energy, prevailing crude prices in the market hit $79.57 per barrel, down from $97.13 per barrel last year.

The company said it would continue to coordinate with the government for the resumption of activities in SC 75 and SC 72.

SC 72 in Recto Bank covers 8,800 square kilometers and is located west of Palawan island and southwest of the Malampaya gas field. SC 75, meanwhile, is located in northwest Palawan spanning 6,160 square kilometers.

“[The] group shall continue to pursue exploration work with respect to its other projects in the Philippines,” PXP Energy said.

To recall, the Department of Energy placed SC 72 and SC 75 under force majeure in April last year, suspending oil and exploration activities in the West Philippine Sea.