PXP Energy Corp. reported a net loss of P36.11 million attributable to parent firm equity holders last year, significantly lower than the P1.71-billion loss a year earlier when it incurred impairment and decommissioning charges.
In a media release on Thursday, the listed oil and gas exploration company said it ended 2022 with a core net loss of P21.99 million, trimming the previous year’s P32.46-billion loss.
It attributed last year’s financial performance to the “improvement in Galoc operations and reduction in recurring overhead.” Galoc is the company’s producing oil field located in the offshore northwest Palawan basin.
Last year, consolidated petroleum revenues rose by 15.4% to P74.1 million despite lower crude oil offtake at 479,955 barrels from 631,948 barrels previously. This came after crude prices averaged at $94.49 a barrel, jumping from $70.46 per barrel a year earlier. Petroleum revenues came from Service Contract (SC) 14C-1 or the Galoc field.
PXP said consolidated costs and expenses last year were down by 3% to P99.6 million as a result of a 4.8% reduction in general and administrative expenses to P59.1 million. It added that petroleum production costs in the Galoc operations remained flat year on year at P40.5 million from P40.6 million.
This year, PXP said it would continue to coordinate with the government on the resumption of exploration activities in two service contracts — SC 75 in northwest Palawan and SC 72 in Recto Bank.
PXP and its subsidiary Forum Energy Ltd. are involved in several petroleum service contracts in the Philippines, either as an operator or as a joint venture partner.
In October last year, the Department of Energy granted the declaration of force majeure for SC 75 and SC 72 from April 6, 2022 until it is lifted by the agency.
The department also allowed the inclusion of expenses incurred, after its directive to suspend activities, as part of the company’s approved recoverable costs but subject to the agency’s audit.
PXP and Forum will also be entitled to an extension of the exploration period under SC 75 and SC 72 corresponding to the number of days that the contractors spent in preparation for the resumption of exploration activities.
On Thursday, shares in PXP fell by 6.07% or P0.35 to close at P5.42 each at the stock exchange.