Weak oil prices deepen PXP loss
PXP Energy Corp., the upstream oil and gas firm led by businessman Manuel V. Pangilinan, sank deeper into the red in the first nine months of the year as weaker crude prices, declining Galoc output, and higher interest expenses weighed on performance.
The company disclosed on Thursday that it incurred a core net loss of P32.8 million during the period, nearly double last year’s P17.8 million, while consolidated net loss attributable to equity holders ballooned to P39.8 million from P14.8 million.
Consolidated revenues fell to P50.3 million from P64.8 million as sales volume slid 13.5 percent to 414,124 barrels and average realized crude price dropped 13.8 percent to $70 per barrel, mirroring the global oil downturn.
Still, PXP said Galoc operations “continued to deliver stable output despite being at the tail end of field life.”
Consolidated costs and expenses edged up to P84.2 million from P78.2 million, mainly due to a one-off overhead increase from a foreign subsidiary. Excluding this, cost levels “remained broadly in line with the prior year,” the company said.
Early this month, the Department of Energy formally presented three new petroleum service contracts to PXP and its joint venture partners—Service Contract (SC) 80 and 81 in the Sulu Sea, and SC 86 (Octon Block) in Northwest Palawan.
The Sulu Sea blocks are jointly administered by the DOE and the Bangsamoro Autonomous Region in Muslim Mindanao through its Ministry of Environment, Natural Resources, and Energy.
SC 86, meanwhile, covers the Octon Block in Northwest Palawan, adjacent to established producing oil fields.
“These new contracts reinforce PXP’s strategic upstream position and align with the Philippine Government’s efforts to boost domestic energy self-sufficiency,” the company said, adding that it is preparing to participate in technical work programs under the new blocks.
PXP said it remains focused on preserving liquidity and maintaining operational readiness while pushing ahead with early-phase technical assessments for SC 80 and SC 81, along with further subsurface work on SC 86.
Despite the continuing force majeure over SC 72 and SC 75, PXP and Forum Energy Ltd. “remain steadfast in their commitment to the long-term potential of these strategically important West Philippine Sea assets.”
Two more service contracts in the Northwest Palawan Basin are also under final review and may be awarded in the coming months.
“With Galoc production approaching the end of field life, the company is also exploring opportunities to reinvest in producing or near-term development fields that could generate earlier cash flow, all while maintaining a clear focus on its upstream business,” PXP said.