PXP net loss narrows to P10M on higher revenues

PXP Energy Corp. managed to trim its attributable net loss in the third quarter to P10.24 million from P18.88 million in the same period last year, the Pangilinan-led company reported on Thursday.

Its core net loss also shrunk to P10.45 million from P12.59 million previously amid lower margins from the Galoc operations, an increase in overhead cost, and higher interest expense, the listed oil and gas company said in a regulatory filing.

PXP’s Galoc operations are covered by Service Contract (SC) 14C-1, which is located offshore northwest Palawan basin.

The company’s petroleum revenues stood at P23.68 million, higher than the P4.17 million last year, coming from three offtakes totaling 475,183 barrels at $80.50 per barrel under Galoc’s operations.

Cost and expenses reached P33.4 million, higher than P18.35 million a year earlier. Of the total, P15.64 million covered petroleum production costs while P17.75 million were general and administrative expenses.

For the nine-month period, PXP recorded a net loss attributable to the parent firm of P22.9 million, down from P25.29 million in the same period last year.

Core net loss stood at P23.87 million compared with P14.67 million in the previous year.

For the three quarters, PXP posted consolidated petroleum revenues of P63 million, higher than P49.28 million a year earlier.

Consolidated costs and expenses were higher at P82.1 million from P65.62 million previously brought about by higher petroleum production costs in SC 14C-1 Galoc at P41.1 million.

In March, the Department of Energy affirmed that the period from Oct. 14, 2020 to April 6, 2022 will be credited back to SC 72 and SC 75.

PXP said that once the force majeure is lifted, both service contracts will retain the equivalent remaining terms of the respective subphases until Oct. 14, 2020.

As of June, PXP holds a 50% interest in SC 75 located in northwest Palawan. Its subsidiary, Forum Energy Ltd., in which PXP holds a direct and indirect interest of 79.13%, has a 70% participating interest in SC 72, also in northwest Palawan, through its wholly owned subsidiary Forum (GSEC 101).

“Each of PXP and Forum will continue to coordinate with the Government on the resumption in both SC 72 and SC 75. Meanwhile, the Group shall continue to pursue exploration work with respect to its other projects in the Philippines, including SC 40 and SC 74,” the company said.

At the local bourse on Thursday, shares in the company went down by one centavo or 0.31% to close at P3.24 apiece. — Sheldeen Joy Talavera