PXP Energy Corp. incurred a consolidated net loss of P40.4 million in the first quarter, compared to P7 million it earned in the same period in 2019, as oil revenues fell with output in its Palawan well declining.
In a disclosure to the stock exchange, Thursday, the former Philex Petroleum Corp. reported a 79% drop in overall petroleum revenues to P6.1 million in the January-March period, compared with P29.7 million it recorded in the same quarter last year.
The revenue dive was caused by a 38% decline in output and a 60% decrease in crude oil price in its Galoc oil production under the Department of Energy-awarded Service Contract 14C-1, mirroring the fall in global demand due to the coronavirus disease 2019 (COVID-19) pandemic.
Assets impairment reached P20.2 million in the period due to the “lower-than-expected future returns” in its oil well as an impact of the crash in global crude oil prices.
The oil firm’s subsidiary Pitkin Petroleum Ltd., which owns a 25% equity interest in Peru’s Marina 1X exploration well under Block Z-38 Contract, said the exploration period of the oil block was extended until the end of the year.
KEI (Peru Z-38) Sucursal del Peru of Australian firm Karoon Energy Ltd. holds a 40% stake in the oil prospect located in the Tumbes Basin, while London-based Tullow Oil plc owns the remaining share.
Last February, the consortium plugged and abandoned the well for lack of oil and exhibiting minor gas. However, it is expecting to produce forward plans for the block after evaluating its drilling results.
Meanwhile, the company’s application with The Philodrill Corp. to explore Area 7, a possible oil discovery site located in the Sulu Sea, remains pending with the Department of Energy (DoE). The block is among the pre-determined areas offered by the department under its Philippine Conventional Energy Contracting Program,
On Thursday, shares in PXP Energy fell by 4.82% to close at P5.13 each. — Adam J. Ang