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PXP suffers P44-M loss on drying oil revenue

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MANUEL V PANGILINAN-LED PXP Energy Corp. suffered a P44.4-million attributable net loss in the first semester as it also recorded losses in oil earnings and impairment of the Galoc oil field in Palawan.

It also posted a reported net loss of P56.3 million and core net loss of P26.9 million in the first six months of the year, the listed gas and oil firm told the stock exchange, Monday.

PXP Energy noted its consolidated revenues from petroleum took an 88.1% dive to P6.1 million as its output fell by around two-thirds and crude oil prices in Service Contract (SC) 14C-1, or the Galoc block, dropped by 62% due to the demand slump with the ongoing coronavirus pandemic.

The company holds a minority stake in the oil field through Forum Energy Philippines Corp.

It recorded total costs and expenses of P39.5 million, 46.7% lower compared with the same period in 2019, mainly consisting of the depletion cost in the Galoc field.

Aside from the crude price crash, it shed P20.2 million upon the impairment of its asset in the block after it was scheduled to temporarily cease operations on Sept. 24 because Rubicon Offshore International terminated its lease contract for the use of its floating production storage and offloading vessel in the gas field.

Meanwhile, the Department of Energy has granted the company’s request to invoke a force majeure over SC 74, or the Linapacan block in northwest Palawan, for nine months from March 13 to Dec. 12 to arrest the pandemic’s impact on its operations. The company operates the oil field with a 70% stake.

Shares in PXP Energy decreased by 4.35% to close at P5.50 apiece on Monday. — Adam J. Ang





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