PXP continuesposting losses

PXP Energy Corp., the upstream oil and gas company of businessman Manuel V. Pangilinan, has yet to recover from a slump that started during the pandemic as it continued to reel from lower margins from Galoc operations and a spike in overhead and interest expenses.

In a stock exchange report, the company reported logging a net loss of P23.9 million in the first three quarters.

The losses grew from the P14.7- million deficit reported in the same period a year ago.

Based on the report, the company's consolidated costs and expenses of P82.1 million from January to September were higher compared to last year's P65.6 million due to higher petroleum production costs in SC 14C-1 Galoc.

However, it was notable that PXP Energy's petroleum revenues during the reference period climbed to P63 million from P49.3 million in 2022.

Halt order remains

PXP Energy received a directive from the DoE in April to halt exploration activities for SC 75 and SC 72 pending necessary clearance to proceed. To date, the government has yet to lift the suspension.

Nonetheless, the company said it will "continue to coordinate with the Government on the resumption of activities 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," it added.

SC 75 was awarded by the DoE on 27 December 2013 and covers an area of 6,160 square kilometers in the offshore northwest Palawan basin.

SC 72 within Recto Bank is a concession acquired by Forum, which became its operator in April 2005. It is located in the WPS, west of Palawan Island and southwest of the Malampaya gas field.

PXP has a 50 percent interest in SC 75. Forum Energy Ltd., in which PXP holds a direct and indirect interest of 79.13 percent, has a 70 percent participating interest in SC 72 through its wholly-owned subsidiary Forum. PXP has a total economic interest of 54.36 percent in SC 72.