PXP Energy Corp. reported a net loss of P18.88 million in the third quarter, significantly lower than the P1.66-billion loss recorded in the same period last year, due to higher profit from its Galoc oil field operations and reduction of administrative expenses.

In a disclosure to the stock exchange on Wednesday, PXP said that from January to September, it managed to reduce its consolidated net loss attributable to parent firm equity holders to P25.29 million from P1.68 billion a year ago after the impairment of its Peru Block Z-38 in 2021.

The upstream oil and gas company’s Galoc operations are covered by Service Contract (SC) 14C-1 located in the offshore northwest Palawan basin.

In the third quarter, PXP’s petroleum revenues went down by 81.8% to P4.17 million from P22.97 million in the same period last year.

Still, its nine-month revenues went up by 15.7% to P49.28 million from P42.59 million, which the company attributed to a higher average crude price at $97.13 per barrel in 2022 from $66.97 per barrel in 2021.

In the third quarter, PXP recorded a 55.8% reduction in consolidated costs and expenses to P18.35 million from P41.56 million in the same period last year.

From January to September, PXP’s consolidated costs and expenses declined 31.7% to P65.62 million from P95.99 million last year.

Last week, PXP said that the Department of Energy granted the declaration of force majeure for two service contracts — SC 75 and SC 72 — separately operated by the company and its subsidiary in northwest Palawan.

PXP holds a 50% interest in SC 75 located in northwest Palawan. Its subsidiary Forum Energy Ltd., in which PXP holds a direct and indirect interest of 79.13%, has a 70% participating interest in SC 72, also in northwest Palawan, through its wholly owned subsidiary Forum (GSEC 101).

On Wednesday, PXP shares closed 1.23% higher to finish at P5.75 apiece. — Ashley Erika O. Jose