PXP Energy Corp., a publicly listed oil and gas exploration firm, reported a first-quarter net loss of P9.4 million, significantly wider than the P2.6 million loss posted during the same period last year. The decline was largely driven by lower crude oil production from the Galoc oil field, softened global oil prices, and a rise in overhead expenses.
Total consolidated revenues fell 22 percent year-on-year to P20.4 million, attributed to a 20 percent drop in oil output, which stood at 157,381 barrels, coupled with a 5 percent decrease in the average crude oil price, which averaged USD76.30 per barrel during the period.
Operating costs and expenses rose to P29.7 million, up from P27.1 million in the previous year. This increase reflected higher petroleum production costs of P17.3 million from P16.2 million, as well as nonrecurring expenses in a foreign subsidiary that drove overhead up to P12.4 million from P10.8 million.
In February, the Securities and Exchange Commission approved the valuation of Forum Energy Limited (FEL) shares held by Tidemark Holdings Limited at P1.56 billion, completing the conditions for the issuance of 430.2 million PXP common shares in exchange for 24.1 million Forum Energy shares.
As a result, PXP’s effective interest rose to 97.88 percent in FEL and 68.5 percent in Service Contract 72 (SC72). Tidemark Holdings, meanwhile, became a significant stakeholder with an 18 percent ownership in PXP.
Looking ahead, PXP said it is evaluating the Dalingding prospect under SC40 in northern Cebu and remains open to new exploration opportunities. The company and its partners are also anticipating the award of Pre-Determined Areas PDA-BP-2 and PDA-BP-3, both located offshore in the Sulu Sea basin. Meanwhile, Service Contracts 7 and 75remain under extended force majeure.
