Philex Petroleum reports P132M loss

MANILA, Philippines—Philex Petroleum Corp., led by businessman Manuel V. Pangilinan, posted a net loss of P132 million in the first nine months of 2012, a reversal of the P472-million net income it posted during the same period last year.

In a disclosure to the Philippine Stock Exchange Wednesday, Philex Petroleum explained the net loss for the period was due mainly to the lower petroleum revenues from Service Contract 14 Block C-1, or the Galoc oil field off Palawan, where it holds a total direct and indirect interest of 60.49 percent through its majority stake in Forum Energy Plc.

The lower petroleum revenues can be traced to the shutdown of the Galoc production starting November last year up to April this year to make way for refurbishment and equipment upgrade.

During the first three quarters of the year, Philex Petroleum posted a 60-percent decline in total revenues to P154.4 million from P387 million a year earlier. Of this amount, P120 million came from petroleum sales by Forum Energy, while the remaining P34 million was generated from the coal sales of Brixton Energy and Mining Corp., a wholly owned subsidiary of Philex Petroleum.

Brixton Energy is the coal arm of Philex Petroleum, which holds coal operating contract (COC) No. 130, covering prospective blocks in Zamboanga Sibugay.

“While we are pleased with the Galoc performance following the floating production, storage and offloading (FPSO) facility refurbishment and mooring upgrade, we continue to be concerned as to the short-term viability of our coal business having regard to falling regional coal prices,” noted Philex Petroleum chair and CEO Manuel V. Pangilinan.

For the second quarter alone, Philex Petroleum posted a 42-percent hike in its revenues to P80.8 million from P56.9 million in the same period last year. Net loss also widened to P51.36 million during the April-June period from P50.99 million a year ago.