PXP Energy posts lower P21.8 million loss in 9 months

MANILA, Philippines — PXP Energy Corp. trimmed its net loss in the  first nine months this year, driven by lower oil production costs.

In a disclosure to the Philippine Stock Exchange, PXP  said its consolidated net loss of P21.8 million from January to September was lower than the P49.1 million loss in the same period last year.

The company attributed the improvement to a reduction in oil production costs, lower depletion rate, and higher other income (charges), partially offset by lower petroleum revenues.

In addition, consolidated net loss attributable to equity holders of the parent company improved to P11.2 million from P31.4 million in the same period a year ago.

Consolidated petroleum revenues declined 51.8 percent in the nine-month period to P51.1 million from P106.1 million in the nine months of 2018.

PXP attributed the decline to the 36 percent lower output and 13.6 percent drop in crude oil price in Service Contract (SC) 14C-1 Galoc and the plug and abandonment (P&A) of SC 14A Nido and SC 14B Matinloc production wells.

Consolidated cost and expenses also dropped 45.7 percent to P94.2 million from P173.7 million in the same period last year.This was caused by lower depletion cost in SC 14C-1 Galoc following the decline in output and the cessation of operational costs in SC 14A Nido and SC 14B Matinloc.

Earlier this week, PXP announced that it submitted an unsolicited proposal for the strategic development and utilization of an integrated gas hub in Malampaya to the Department of Energy (DOE).

It said the proposed hub would be developed upon the expiry of SC 38, which covers the Malampaya gas project, in 2024.

Under the unsolicited proposal, the Malampaya infrastructure and distribution network, which is strategically positioned in the West Philippine Sea, is envisioned to support the continued development of the Malampaya resources, as well as the economic development of Sampaguita Field and other nearby prospects under SC 72, which is operated by PXP through Forum (GSEC 101) Ltd.

“The project intends to ensure energy security to the country from indigenous natural gas resources for the next 25 years and beyond, while bringing in significant revenues to the Philippine government,” PXP said.

It added that the use of the Malampaya facilities as an integrated gas hub would also support the development of a robust indigenous gas industry.

“These project benefits are consistent with DOE’s commitment to pursue national development through the two-fold agenda of attaining energy independence and implementing power market reforms as contained in the Philippine Energy Plan, and is aligned with the DOE’s clean fuel strategy, including the reduction of dependence on coal,” PXP said.

PXP said the unsolicited proposal is also seen to yield substantial foreign exchange savings resulting from the reduced importation of coal and other fuel supply.