PXP incurs P1.7 billion net loss in 2021

MANILA, Philippines — Listed upstream oil and gas firm PXP Energy Corp. said its attributable net loss reached  P1.71 billion due to the provision for impairment related to its Peru asset.

In a disclosure to the Philippine Stock Exchange yesterday, PXP Energy said its net loss for 2021 was significantly higher than the P56.1 million recorded in the previous year.

This was “largely  a result of a P1.655 billion provision for impairment of the carrying value (net of the settlement sum) of oil and gas assets related to Peru block Z-38.”

In September last year, PXP Energy’s 53.43-percent-owned subsidiary Pitkin Petroleum Ltd. (PPL) and its wholly owned subsidiary Pitkin Petroleum Peru Z-38 SRL (Pitkin Peru) entered into a deed of settlement and release with KEI (Peru Z-38) Pty Ltd (KEI) and its wholly owned branch KEI (Peru Z-38) Pty Ltd Sucursal del Peru (KEI Peru) relating to Pitkin Peru’s dispute with KEI Peru in Block Z-38 located in offshore Peru.

Under the deed, KEI agreed to pay $9.6 million in cash to PPL in full and final settlement of all claims by Pitkin Peru and its associates in connection with Block Z-38.

PXP Energy said its core net loss was lower by 29 percent  to P32.5 million.

As global oil prices begun to climb last year, the company more than doubled its petroleum revenues from P30.3 million to P64.2 million on the back of a 75.4 percent rise in average price of Galoc crude sales from $38.18 per barrel to $69.58 per barrel.

The rise in revenues was, however, offset by lower output amid the decline in field production rate in Service Contract 14C-1 Galoc, with three completed liftings at 631,948 barrels versus 750,506 (bbls) in 2020.

As it waits for signals from government for the drilling of two appraisal wells over the Sampaguita gas discovery in SC 72, and the conduct of a 3D seismic survey in SC 75, PXP Energy said it “shall continue to pursue explorations with respect to its other projects in the Philippines including SC 40 and SC 74.”