PANGILINAN-LED PXP Energy Corp. narrowed its attributable net loss to P30.9 million for 2024 from P97 million a year earlier, driven by higher petroleum sales volume, reduced overhead costs, and lower net interest expenses.
The company’s core net loss stood at P33.3 million during the period, lower than the P42.5 million recorded in 2023, PXP said in a statement on Thursday.
The reduction was attributed to “higher volume lifted, a reduction in overhead, and lower net interest expense.”
Petroleum revenues rose by 6% to P67 million, driven by higher output sold at 498,126 barrels of oil. This was partially offset by a slight decline in the average crude oil price to $79.97 per barrel from $80.50 per barrel previously. The crude was sourced through Service Contract (SC) 14C-1 Galoc.
SC 14C-1 is a block containing the producing Galoc Oil Field, situated offshore Northwest Palawan. The oil field has yielded approximately 24.2 million barrels since production began in October 2008, according to PXP.
Costs and expenses declined by 10.5% to P91.8 million, primarily due to significant reductions in both production costs and recurring overhead, which fell to P37.5 million and P54.4 million, respectively.
Amid ongoing geopolitical tensions, PXP and Forum Energy Limited reiterated their commitment to SC 72 and SC 75 despite the extended force majeure on both blocks.
The company holds a 50% operating interest in SC 75, located in Northwest Palawan. Forum Energy, through its wholly owned subsidiary Forum (GSEC 101) Limited, has a 70% operating interest in SC 72 Recto Bank, offshore West Palawan.
PXP Chairman Manuel V. Pangilinan said the company remains unable to proceed due to the moratorium.
“We can’t do anything when the moratorium is there because we don’t own the asset. It’s owned by the government. Service contracts [are] given to us by the government as [a] concessionaire,” Mr. Pangilinan told reporters on Monday.
He added that the company could initiate discussions with China National Offshore Oil Corp. (CNOOC), China’s state-owned oil producer, to explore possible action.
“Probably, there has to be some, I guess, some conversation between the Chinese government first. But what we might be able to do is we’ll talk to CNOOC, our counterpart, because it’s an enterprise-to-enterprise [arrangement] as [the] private sector,” he said.
PXP and CNOOC previously held talks on a potential joint oil and gas development in the South China Sea.
Meanwhile, PXP and its joint venture partners are anticipating the imminent awarding of two pre-determined areas (PDAs) offered by the government for petroleum exploration.
A joint venture comprising PXP, The Philodrill Corp., Sunda Energy Plc (United Kingdom), and operator Triangle Energy (Global) Limited (Australia) has submitted bid documents for petroleum exploration in two PDAs located in the Sulu Sea Basin.
“The company is also actively assessing the feasibility of SC 40’s Dalingding prospect, located onshore in northern Cebu, and will continue to evaluate other oil and gas projects within the Philippines.”
SC 40, also known as the North Cebu Block, is situated in the Visayan Basin, which the Department of Energy considers among the “most prospective in the country,” second only to the producing Northwest Palawan Basin. — Sheldeen Joy Talavera
