PXP Energy Corp. said Thursday it narrowed first-half net loss on higher oil production from the Galoc field and average crude oil prices, reduced overhead expenses and lower net interest expenses.
First-half net loss eased to P9.2 million this year from P12.7 million last year.
Consolidated petroleum revenue saw an increase of 9.1 percent to P42.9 million as the average crude oil price rose 3.2 percent to USD82.10 per barrel and a 2.6 percent increase in output sold, totaling 309,198 barrels from the Galoc oil field.
Consolidated costs and expenses slightly rose to P49.1 million, with petroleum production costs climbing to P26.2 million, offset by reduced recurring overhead expenses at P22.9 million.
In a strategic move aimed at consolidating interests, PXP’s board approved the issuance of 430.2 million common shares to Tidemark Holdings Limited in exchange for 24.1 million shares held by Tidemark in Forum Energy Ltd. The transaction, valued at approximately P1.56 billion or P3.62 per share, is structured with a swap ratio of approximately 17.8337 PXP shares for every Tidemark FEL share.
The share swap aims to enhance the effective interest of PXP in Forum Energy to 97.88 percent and in Service Contract 72 to 68.5 percent. SC 72 covers the Recto Bank in the disputed area in the West Philippine Sea.
Tidemark will retain an 18 percent ownership stake in PXP. The transaction had been approved by the majority of PXP shareholders.
Looking ahead, PXP and Forum Energy Limited plan to collaborate closely with the government on activities within SC 72 and SC 75, while also pursuing exploration efforts in SC 40. Additionally, PXP will assess new opportunities in the Philippine oil and gas sector to bolster its portfolio.
SC 75 is an offshore prospect in Northwest Palawan while SC 40 is an onshore prospect in North Cebu.
