PXP Energy trims net loss on improved oil sales

MANILA  -Billionaire Manuel Pangilinan’s PXP Energy Corp. cut its net loss to P22.9 million in the nine months to September period as its petroleum revenues grew.

In a stock exchange disclosure on Thursday, PXP said its consolidated net loss attributable to equity holders of the parent company were lower compared to the P25.3 million recorded in the same period in 2022.

At the same time, however, consolidated costs and expenses ballooned to P82.1 million from P65.6 million due to higher petroleum production costs in Service Contract (SC) 14C-1 covering the Galoc oil field.

Production costs swelled to P41.1 million from P28.4 million as the company recorded lower returns from the field operations in Galoc and higher interest expenses.

Consolidated revenues rose by 27.79 percent to P63 million as crude oil offtakes in SC 14C-1 totaled 475,183 barrels at $80.5 per barrel. This is higher than last year’s 291,216 barrels at $97.1 per barrel.

PXP also said it would continue to coordinate with the national government on the resumption of activities in two other service contracts to improve production rates.

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

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

SC 40 is located in the Visayan Basin in the central part of the Philippines. It covers the northern area of Cebu province and the adjacent offshore areas in the Central Tañon Strait and Visayan Sea.

SC 74, on the other hand, is a 4,268-square-kilometer area northwest of Palawan.