PXP Energy Corp. said Thursday its core net loss widened to P42.5 million in 2023 from P22 million in 2022 on lower margins from the Galoc operations, increased overhead cost and higher interest expense.
PXP said in a disclosure to the Philippine Stock Exchange its consolidated net loss attributable to equity holders of the parent company amounted to P97.4 million, wider than P36.1 million in 2022.
This followed the impairment charges in service contract 74 or the Linapacan block, offset by changes in decommission estimates in SC 14C-2 or the West Linapacan block.
The company’s consolidated petroleum revenues also went down to P63.2 million from P74.1 million in 2022 arising from three delivery offtakes.
PXP generated lower output of 475,183 barrels of oil last year, compared with 479,955 barrels in 2022 while the average price per barrel of oil also declined to $80.5 per barrel from $94.5 per barrel in SC 14C-1 Galoc.
The company’s consolidated costs and expenses were slightly higher at P102.6 million last year from P99.6 million in 2022 brought about by a slight improvement in petroleum production costs at P39.9 million, offset by an increase in overhead expenses to P62.7 million.
Overhead expenses went up from P59.1 million in 2022 due to the surge in compliance and administrative costs of its foreign subsidiaries.
Meanwhile, PXP and Forum Energy Ltd. said they would continue to coordinate with the government on the possible resumption of activities in both SC 72 and SC 75 and pursue exploration work in SC 40.
“There is still a moratorium so we cannot do anything. I can understand why they did that,” PXP chairman Manuel Pangilinan said.
PXP said it would also assess and study other oil and gas exploration projects in the Philippines.