PXP Energy Core Net Loss Widens to P9.2 Million in 1Q 2025

PXP Energy Corporation's (PXP) core net loss stood at P9.2 million (1Q 2024: P2.6 million), following a lower volume and decrease in price from crude oil sold by Galoc operations and an increase in overhead. Consolidated net loss attributable to equity holders of the parent company amounted to P9.4 million (1Q 2024: P2.6 million).

Consolidated revenues dropped by 22.4% at P20.4 million (1Q 2024: P26.3 million), following a 20.0% decline in oil output sold at 157,381 bbls (1Q 2024: 196,826 bbls) and a 5% decrease in average crude oil price at US$76.3/bbl (1Q 2024: US$80.0/bbl) in SC 14C-1 Galoc.

Consolidated costs and expenses stood at P29.7 million (1Q 2024: P27.1 million), reflecting higher petroleum production costs at P17.3 million (1Q 2024: P16.2 million) and an increase in overhead at P12.4 million (1Q 2024: P10.8 million) due to nonrecurring expenses in a foreign subsidiary.

On 13 February 2025, the Securities and Exchange Commission approved the valuation of Forum Energy Limited (“FEL”) shares held by Tidemark Holdings Limited (“Tidemark”) at Php1.56 billion. Following this approval and completion of closing conditions, PXP issued 430.24 million common shares to Tidemark on 18 March 2025, at Php3.62 per share, in exchange for 24.13 million FEL shares. The share swap was based on an exchange ratio of 17.8337 PXP shares for every FEL share. As a result, PXP’s effective interest increased to 97.88% in FEL and 68.5% in SC72, while Tidemark became a shareholder owning 18% of PXP.

Outlook

The Company is currently evaluating the feasibility of the Dalingding prospect under SC 40, located onshore in northern Cebu, and remains open to pursuing other oil and gas opportunities across the Philippines. At the same time, PXP and its joint venture partners are anticipating the forthcoming awarding of Pre-Determined Areas PDA-BP-2 and PDA-BP-3, both located offshore in the southwestern portion of the Sulu Sea basin. Despite the extended force majeure over Service Contracts 72 and 75, PXP and FEL continue to demonstrate a strong commitment to resuming exploration activities in both blocks.

PXP Energy Corporation is an upstream oil and gas company incorporated in the Philippines whose shares are listed on the Philippine Stock Exchange.