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MANILA, Philippines – PXP Energy, a Pangilinan-led petroleum company, cuts its losses to P26.3 million.
The nine-month financial health report of PXP Energy, formerly known as Philex Petroleum Corporation, showed that its losses shifted from P65.9 million last year to P26.3 million.
The petroleum company’s net loss is valued at P38.5 million, which is heftier than P118.1 million last year. The more acceptable net loss of the petroleum firm is due to reduction of operating costs by 77.4 percent, stated by the company.
Forum Energy Ltd, the petroleum company’s subsidiary, contributed its net of lower petroleum revenues, which trimmed the nine-month financial losses. Moreover, world market’s oil price decline also played a part.
Amid the critical times, PXP Energy looks into structural strategic paths and more opportunities for its business recovery.
Pitkin Petroleum Limited, the company’s majority owned subsidiary, assigned its participating interest at 70 percent in its offshore Mindoro prospects’ Service Contract 53 to Mindoro-Palawan Oil and Gas, Inc. on April 27 this year.
Its share reduction to 19.8 percent from 64.7 percent is due to its holdings distribution as property dividends. Nonetheless, this is in line with increased PXP ownership base from 16.4 percent to 30 percent.
Gradual increases in oil prices provide hope for the petroleum company. However, low oil prices will remain for a longer time.
Due to unresolved sea dispute in West Philippine Sea (South China Sea), PXP Energy’s hope for a favorable result in banking on Recto Bank-located significant prospect has dispelled. Lifting the suspension of drilling at the prospect area has not been done until now. This is despite government agencies requesting to Department of Energy (DOE).
The petroleum company’s Chairman, Manuel V. Pangilinan, hopes that the state visit of the President to China will provide a positive result for oil exploration project in West Philippine Sea.
PXP Energy owns oil and gas exploration and generation assets in the country directly and indirectly. It also owns an offshore Peru-located exploration asset indirectly.