PXP’s net loss widens to P6M

PXP Energy Corp. saw its attributable net loss for the first quarter widen to P6.08 million from P2.73 million in the same period last year on lower margins from its Galoc operations and higher interest expense.

In a stock exchange disclosure, PXP said its revenues for the quarter declined by 5% to P17.87 million from P18.81 million a year ago.

This came after the one completed lifting of about 136,087 barrels at $81.4 per barrel versus the 144,897 barrels from one lifting priced at $84.1 per barrel previously in Service Contract (SC) 14C-1 Galoc.

The listed oil and gas company said costs and expenses rose by 9.9% to P22.41 million from P20.40 million, driven by higher petroleum production costs along with general and administrative expenses.

PXP said the increased petroleum costs in SC 14C-1 Galoc went up to P10.94 million in the first quarter compared with P9.44 million a year ago. Other expenses increased by 4.6% to P11.47 million from P10.97 million.

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

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

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).

On March 29, PXP said that the Energy department had granted its request to place SC 74 under a technical moratorium from Sept. 13, 2022 to Sept. 13, 2024.

This will allow PXP and its joint venture partners to conduct further studies and establish appropriate technology needed to increase the production rate and recoverable reserves from the Linapacan B field that will eventually “warrant economically viable production.”

At the local bourse on Thursday, shares in the company fell by seven centavos or 1.12% to end at P6.18 apiece. — Ashley Erika O. Jose