PXP Energy narrows 9-month net loss on higher Galoc output

PXP Energy Corp., the oil and gas arm of Philex Mining Corp., said Thursday it recorded a net loss of P22.9 million in the nine-months through September as increased cost of boosting output from the Galoc oil field trumped the rise in revenue.

The net loss, however, was narrower than the P25.3 million booked in the same period last year.

Revenue gains were tempered by lower operating margins from Galoc as oil prices dropped, and higher overhead cost and interest expense due to higher output and costs from overseas subsidiaries.

The three petroleum offtakes from Galoc between January and September total 475,183 barrels of oil this year compared with two offtakes last year that total 291,216 barrels. The average price of oil per barrel this year was sharply lower at USD80.50 compared with USD97.10 a barrel last year.

Consolidated costs and expenses rose 25 percent year-on-year to P82.1 million due to higher petroleum production costs at Galoc and a surge in compliance and administrative costs of foreign subsidiaries.

PXP said it will continue to coordinate with government on the resumption of activities in Service Contracts 72 and 75, both oil and gas prospects in the disputed areas of the West Philippine Sea. Meantime, SC 74 remains under technical moratorium until September 2024 as the joint venture partners conduct further studies to establish the appropriate technology to increase production rates and recoverable reserve at the Linapacan B field.