PXP Energy Corp., the publicly listed upstream oil and gas subsidiary of Philex Mining Corp., reported a reduced core net loss of P16.7 million in the first nine months, down from P22.9 million during the same period last year.
The company attributed the improvement to higher average crude oil prices, increased volumes lifted from its Service Contract 14C-1 Galoc operations, and a reduction in overhead and net interest expenses.
Consolidated petroleum revenues increased by 2.8 percent to P64.8 million from P63.0 million in 2023. The revenue growth was supported by marginal improvements in average crude prices, which rose to USD81.2 per barrel from USD80.5 per barrel, alongside higher output sold at 478,999 barrels compared to 475,183 barrels in the previous year. This consistent production reflects PXP’s operational efficiency amid fluctuating market conditions.
PXP said consolidated costs and expenses were trimmed down to P78.2 million, compared to P82.1 million in the same period last year. This reduction was largely due to a significant cut in recurring overhead costs, which decreased to P37.0 million from P41.0 million. Additionally, net interest expenses fell slightly to P2.3 million from P3.0 million, although this was partially offset by a slight increase in petroleum production costs to P41.2 million.
A joint venture that PXP formed with The Philodrill Corporation, Sunda Energy Plc, and Triangle Energy submitted in August bid documents for two key petroleum blocks offered by the Bangsamoro Autonomous Region of Muslim Mindanao. The joint venture was the sole bidder for the two blocks, and their applications were found to be complete, qualifying them for further substantive legal, financial, and technical evaluations.
Looking ahead, both PXP and Forum Energy Limited remain committed to their operations in SC 72 and SC 75, despite an extended force majeure situation on both blocks. The company is optimistic that its applications for the newly bid PDA-BP-2 and PDA-BP-3 will soon be awarded to the joint venture, enhancing their operational footprint in the region.
Meanwhile, feasibility studies on the SC 40 Dalingding-2 prospect are currently ongoing, indicating a proactive approach to future growth opportunities.
