Pangilinan-led PXP Energy Corporation has significantly slashed its losses in the first quarter to P5.6 million from a relatively heftier P16.9 million within the same three-month stretch last year.
The company’s net loss attributable to equity holders of its parent firm had been at P4.3 million, substantially down from P30 million last year; while consolidated net loss had been at P11 million, also notably pared from P40.4 million in 2020.
In terms of revenues, the consolidated yield of the company had been flattish, mirroring the P6.0 million level posted within the same period last year.
The company further reported that its consolidated costs and expenses had decelerated by 32.5-percent at P18 million versus last year’s P26.7 million, mainly because “there was no production costs recognized in SC (Service Contract) 14-C 1” in the Galoc field.
PXP Energy noted though that the ‘no production cost’ logged in Galoc, “was offset by the increase in the group’s general and administrative expenses to P18 million.” That cost component was at leaner P14.4 million within parallel months of January to March in 2020.
PXP Energy said its key administrative costs had been those on legal expenses, which the company incurred within the ordinary course of operating its business.
Onward, PXP Energy emphasized that its focus shall be on “fulfilling its work commitments” for its Service Contracts 72 and 75 within Northwest Palawan basin.
For SC 72 in particular, which straddles Recto Bank, the company’s target is to undertake extended seismic survey so it can establish the area where well drilling shall subsequently be carried out.
The company is likewise continuing its discussion with the government, primarily on prospects of eventually bringing in China National Offshore Oil Corporation (CNOOC) as prospective partner if the Recto Bank block will yield commercial petroleum reserves.
As initially assessed, the block has the potential to yield commercial gas that could match or even of bigger scale than that of resource-depleting Malampaya field.
The government is currently on its quest for a petroleum field that could replace Malampaya, especially on gas production, because there are power fleets that would be needing this fuel.
And it is within that investment paradigm that PXP Energy has been casting its exploration and development activities on its upstream petroleum ventures.