PXP Energy Corp. is pursuing new cash-generating projects and partnership opportunities after posting a wider net loss in the first half, as weaker oil sales and higher financing costs weighed on earnings, while production from its Galoc oil field continued to decline.

The Pangilinan-led listed upstream oil and gas company said Tuesday its consolidated net loss attributable to equity holders widened to P31.6 million in the six months from P22.8 million a year earlier.

Core net loss also increased to P25.7 million from P21.1 million, largely due to higher net interest expense.

Petroleum revenues fell 36 percent to P21.2 million from P33.2 million, reflecting a 44.1 percent drop in sales volume after the company completed only one crude lifting of 156,983 barrels during the period, compared with two liftings totaling 280,742 barrels a year earlier.

The average realized crude price also declined 11.1 percent to $62.90 per barrel from $70.74 per barrel.

Petroleum production costs declined to P19.3 million from P28.6 million, in line with lower sales volumes, while general and administrative expenses eased to P24.1 million from P26.4 million.

The savings, however, were offset by a sharp increase in financing costs. Net financing costs climbed to P10.3 million from P2.1 million, reflecting higher net interest expense and a P6-million foreign exchange loss on the company’s U.S. dollar-denominated loans following the peso’s depreciation against the U.S. dollar. In the same period last year, PXP recorded a P0.9-million foreign exchange gain.

“With Galoc production approaching the end of field life, PXP continues to evaluate opportunities that may support earlier cash generation while preserving exposure to longer-term exploration potential,” the company said.

As part of that strategy, the company secured Petroleum Service Contract 91 in the Northwest Palawan Basin to a consortium that includes PXP subsidiary Forum Energy Philippines Corp.

The 10-year service contract awarded in April by the Department of Energy covers 103,034 hectares, including the expanded Cadlao Field, which has estimated contingent resources of 6.2 million barrels of oil.

PXP said it will participate in the work program under the contract in accordance with the agreement and Department of Energy requirements.

The company also advanced exploration activities in Service Contracts 80 and 81 in the Sulu Sea, where the consortium led by Tetragon Energy Ltd. awarded a $1.45-million contract to DUG Technology Ltd. to reprocess more than 4,000 square kilometers of existing 3D seismic data and up to 3,000 line-kilometers of 2D seismic data.

PXP also continues to maintain its interests in Service Contracts 72 and 75, which remain under force majeure, while carrying out work programs across its portfolio in line with government-approved commitments.