By Lenie Lectura – May 9, 2019
from Business Mirror
PXP Energy Corp. on Wednesday posted a net income of P7 million from January to March this year as against a net loss of P8.4 million in the same period a year ago.
The turnaround was attributed to “higher other income,” partially offset by the increase in cost and expenses and marginally lower petroleum revenues.
Petroleum revenues declined by 3.1 percent to P29.7 million, resulting from a 12.5-percent higher volume offset by an 11.8-percent drop in crude oil price.
Consolidated cost and expenses stood higher at P46.9 million brought about by higher depletion cost in Service Contract 14C-1 Galoc following higher output, among other factors.
PXP Energy holds a 78.98-percent controlling interest in UK-based Forum Energy Ltd., which, in turn, has a 70-percent stake in SC 72, an oil-and-gas-exploration permit covering the Sampaguita natural-gas prospect in the Reed Bank, to the west of Palawan.
PXP said it will take guidance from the Philippine government in respect of any future activity in SC 72 and SC 75.
The company is mindful that the Malampaya gas resource, which supplies about 40 percent of Luzon’s power requirements, could be exhausted within the next decade. Therefore, it pointed out that the resumption of exploration in SC 72 is of national interest.
“The company remains hopeful the force majeure imposed on SC 72 and SC 75 will be lifted by the Department of Energy soon for the company to be able to resume exploration works in these SCs,” PXP said.
PXP is an upstream oil and gas company, with exploration and production assets located in the Philippines and in offshore Peru.