PXP Energy significantly trims net loss

Published February 27, 2021, 8:13 AM

by Myrna M. Velasco

Pangilinan-led PXP Energy Corporation has substantially trimmed its consolidated net loss last year to P76.3 million compared to a considerably enormous scale of P297.2 million in 2019.

On a core net loss basis, the company was also able to bring that down to P45.7 million in 2020 versus the heftier level of P79.8 million in the previous year.

That extent of financial performance then had also significantly reduced PXP Energy’s consolidated net loss attributable to equity holders of the parent firm to P56.1 million last year as against P272.1 million in 2019.

The energy company reported that its consolidated petroleum revenues last year dipped by 58.3-percent at P30.3 million vis-à-vis a more robust turnout of P72.5 million in 2019.

The decline in revenues had been mainly attributed to the 24-percent lower output “following normal decline rate in field production in its Service Contract 14C-1,” or the Galoc field, as based on three completed liftings last year.

The company added that the lower production was aggravated by the “40-percent slump in Galoc crude sale price, due to a worldwide collapse in demand in 2020 caused by the Covid-19 pandemic.”

PXP Energy highlighted though that its consolidated costs and expenses had been remarkably down by 48.2-percent to P98.7 million last year vis-à-vis higher spending of P190.6 million in the prior year; and that was mainly because of lower petroleum production costs and the corresponding downtrend in output at the Galoc production area.

The company added that it had set provision for “impairment of assets and loss on write-off was reduced to P6.2 million”, that’s against P199.1 million in 2019; and related primarily “to the lower-than-expected future returns in SC14-C 1 Galoc, following the recent crash in global crude oil prices and the ongoing evaluation of the continuous production in the field.”

Onward, the company is sorting out next steps on the ‘resume-to-work’ notice from the Department of Energy (DOE) relative to its petroleum exploration blocks under Service Contracts 72 and 75 in Northwest Palawan basin.

The company emphasized it will “take guidance from the Philippine government with respect to fulfilling its work commitments in SC 72 and SC 75,” while also continually working on its upstream petroleum investments in Peru.