PXP Energy narrows losses on higher crude oil prices

PHOTO FROM PXP ENERGY/WEBSITE

Pangilinan-led PXP Energy Corp., an upstream oil and gas firm, managed to cut its core net loss by 26% percent in the first nine months of 2024, thanks to higher fuel prices and improved performance of its Galoc oil field.

The listed upstream oil and gas firm told the local bourse Thursday that its core net loss was reduced to P17.8 million, lower than the P23.9 million a year ago. Its consolidated net loss attributable to equity holders of the parent company was also trimmed to P16.7 million from the P22.9 million reported in the same period in 2023.

READ: PXP Energy finds dismal gas site in Palawan, drops project

The group’s consolidated petroleum revenues increased by 3% percent to P64.8 million against the previous P63 million, as the average crude price in Service Contract (SC) 14C-1 Galoc block inched up to $81.2 per barrel from $80.5 a barrel last year.

PXP Energy also booked higher output from the Galoc oil field at 478,999 barrels from a year ago’s 475,183 barrels.

Consolidated costs and expenses were also reduced to P78.2 million from P82.1 million in the period.

Late in August, its joint venture with The Philodrill Corporation, Sunda Energy Plc (UK), and Operator Triangle Energy (Global) Limited (Australia) formalized their interest in joining the bidding for the petroleum exploration of a pre-determined area in the Bangsamoro Autonomous Region of Muslim Mindanao.

“The JV was the sole bidder for the two blocks, and its applications were found to be complete, thus qualifying them for further substantive legal, financial, and technical evaluation,” it said.

PXP Energy reiterated it would continue to work with the government to push for exploration activities in SC 72 and SC 75.

The Department of Energy earlier declared a force majeure for SC 75 and 72 as the agency ordered the suspension of oil exploration activities in the West Philippine Sea last April. SC 72 in Recto Bank covers the Sampaguita natural gas discovery and is situated close to the Malampaya gas field. SC 75, meanwhile, is located in Northwest Palawan spanning 6,160 square kilometers with PXP Energy as the operator.

Likewise, PXP Energy was determined to pursue its exploration work in SC 40, or the North Cebu Block located in the Visayan Basin in the central part of the Philippines. “PXP will assess and study other oil and gas projects within the Philippines,” it added.