PXP Energy Reports Operating Results for 1H 2019

PXP Energy Corp. (PSE: PXP) has reported consolidated net loss attributable to equity holders of the parent company at PhP7.6 million for the first half of 2019, down from PhP20.1 million in the same period last year. Reported consolidated net loss was at PhP17.9 million, down from the PhP32.8 million in the first half of 2018.

Consolidated petroleum revenues are 22.9% lower at PhP51.4 million (1H 2018: PhP66.7 million) resulting from a 13.6% 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 are 22% lower at PhP86.2 million (1H 2018: PhP110.5 million) brought about by lower depletion cost in SC 14C-1 Galoc and the cessation of operational costs in SC 14A Nido and SC 14B Matinloc; Group general and administrative expenses higher due to depreciation charges from Right-to-Use asset.

Consolidated net loss was lower at PhP17.9 million (1H 2018: PhP32.8 million) due to reduction in oil production costs, lower depletion rate, and higher other income (charges), partially offset by lower petroleum revenues.

On February 11, 2019, Philex Mining Corp. (PMC, PSE: PX) paid an additional PhP1.386 billion in connection with the company’s announcement last October 26, 2018, of the signing and execution of a definitive subscription agreement, following the share subscription of PMC of 260,000,000 common shares at PhP11.85 per share for a total consideration of PhP3.081 billion. Following the payment, PMC’s total paid subscription increased from PhP770.25 million to PhP2.156 billion, representing 70% of its total subscription in PXP.

PXP, through Forum Energy Ltd, a 78.98% owned subsidiary, will take guidance from the Philippine Government in respect of any future activity in SC 72 and SC 75. The company is mindful that the Malampaya gas resource, which supplies about 40% of Luzon’s power requirements, could be exhausted within the next decade; in that light, resumption of exploration in SC 72 is of national interest. The Company, therefore, remains hopeful that the force majeure imposed on SC 72 and SC 75 will be lifted by the Department of Energy soon for the Company to be able to resume exploration works in these SCs.