Weak peso drags MVP's PXP deeper into red
PXP Energy Corp. saw its consolidated net loss widen to P40.7 million in the first nine months of 2026 from P39.8 million a year earlier, as higher foreign exchange losses and interest expenses outweighed stronger petroleum revenues.
In its financial disclosure, the Manuel V. Pangilinan-led company said the peso’s depreciation against the United States dollar drove its net foreign exchange loss to P8.6 million from P1.2 million last year, largely due to unrealized losses on its dollar-denominated liabilities.
Net interest expense also increased to P7.1 million from P4.9 million, adding pressure on earnings despite improved contributions from its Galoc oil field operations.
Net loss attributable to shareholders of the parent company widened to P39.5 million from P37.9 million, although core net loss narrowed to P30.9 million from P32.8 million.
PXP’s petroleum revenues climbed 26.9 percent to P63.9 million from P50.3 million, supported by its increased participating interest in the Galoc oil field and higher crude prices.
Its stake in Galoc, held through Forum Energy, rose to 4.69 percent from 3.21 percent in December 2025, while the average realized crude price increased 2.3 percent to $72.13 per barrel.
These gains offset an 11.9-percent decline in Galoc oil liftings to 364,788 barrels from 414,124 barrels a year earlier.
However, petroleum production costs also increased to P48.7 million from P40.7 million, reflecting the company’s larger interest in the field.
General and administrative expenses eased to P40.1 million from P43.6 million.
Galoc nearing end of life
With Galoc production approaching the end of its field life, PXP is looking to strengthen its exploration portfolio and identify projects capable of generating cash sooner.
“With Galoc production approaching the end of field life, the Company remains focused on maintaining operational readiness and exercising financial discipline across its portfolio,” PXP said in its disclosure.
The company is also reviewing its medium-term portfolio strategy and exploring funding and partnership opportunities to support future operations.
PXP secured exposure to another oil prospect in Northwest Palawan through Service Contract (SC) 91, which covers the Cadlao Field with estimated contingent resources of 6.2 million barrels of oil.
The 10-year contract was awarded in April to a consortium that includes PXP subsidiary Forum Energy Philippines Corp.
Meanwhile, exploration activities under SC 80 and SC 81 in the Sulu Sea have begun following the award of a $1.45-million seismic reprocessing contract to DUG Technology Ltd.
The project covers more than 4,000 square kilometers of three-dimensional seismic data and up to 3,000 line-kilometers of two-dimensional data.
Initial results are expected in the first quarter of 2027, with the final dataset targeted for the third quarter.
PXP’s interests in SC 72 and SC 75 remain under force majeure as the company seeks new sources of production and revenue.