PXP Energy Corp. said Wednesday it reduced its net loss in the first nine months to P14.7 million from P20.2 million in the same period last year on higher profit from Service Contract 14C-1 Galoc operations and lower general and administrative expenses.
PXP said in a disclosure to the stock exchange consolidated net loss attributable to equity holders of the parent company dropped to P25.3 million from P1.682 billion a year ago due to impairment in Peru Block Z-38 in 2021.
Petroleum revenues went up 15.7 percent at P49.3 million from P42.6 million despite lower crude offtake totaling 291,216 barrels of oil per day from 429,549 bbls a year earlier. This was due to higher average crude price at $97.13 per bbl from $66.97 per bbl in SC 14C-1 Galoc.
Costs and expenses eased 31.6 percent to P65.6 million from P96 million on the reduction in general and administrative fees, while petroleum production costs in SC 14C-1 Galoc remained flat at P28.4 million.
The Department of Energy granted on Oct. 11 the declaration of force majeure for SC 75 and SC 72 starting April 6, 2022, or until it was lifted.
The DOE also approved the inclusion of total expenses incurred due to the directive to suspend activities as part of the approved recoverable costs, subject to audit.
The agency also granted PXP and Forum Energy Plc. an extension of the exploration period under SC 75 and SC 72, corresponding to the number of days the contractors spent in preparation for the activities that were suspended by the DOE’s suspension order on 06 April 2022.
“PXP and Forum will continue to coordinate with the Government on the resumption of activities in both SC 75 and SC 72,” the company said.
Meanwhile, the group said it would continue to pursue exploration work on other projects in the Philippines, including SC 40 and SC 74.
PXP is an upstream oil and gas company incorporated in the Philippines with shares listed on the Philippine Stock Exchange.