MANILA, Philippines – The upstream company in the oil and gas industry, PXP Energy Corporation (PXP), grew its net deficits during 2017 because of the losses in the foreign exchange as well as the tax provisions that happened during the term.
In an announcement through the Philippine Stock Exchange (PSE), PXP Energy Corp. revealed that its profit losses accredited to the holders of equity went up to 39.1 million pesos in 2017 from 22.4 million pesos in 2016, increasing the profit loss by 74 percent.
The total profit loss reported was higher by 57 percent compared with the 36.4 million pesos, resulting to 57.1 million pesos.
PXP penned a total petroleum sale worth 104.4 million pesos, which is a bit higher compared with the revenues from the past year of 101.6 million pesos. This increase in revenue resulted from the improvement of 24 percent in the unprocessed oil price but offset by a lower oil production by 18 percent.
The petroleum company also incurred lower total expenses and cost worth 158.2 million pesos, which is lower by 7.4 percent compared with 2016’s 170.8 million pesos. The lower cost and fees resulted from the decreased production cost and consumption of petroleum, as well as the ongoing overhead cost management of the company.
Nonetheless, the larger revenue deficit came from the 0.1 million peso loss in foreign exchange opposed to the foreign exchange gain amounting to 13.4 million pesos during the past year.
PXP Energy Corp. also earned a means of 2.3 million pesos intended to income tax contrast with an advantage of 12.3 million peso income tax during the former year.
Pitkin Petroleum Limited, a subsidiary of PXP, repurchased 12.98 percent of the total shares amounting to 11.43 million at 0.35 dollars for each share, amounting to a total worth of 4 million dollars.
At the same time, PXP traded 12.98 percent of the company’s Pitkin shares and collecting roughly 2.1 million dollars, sold total shares of 6.107 million. Its minor shareholders likewise traded 12.98 percent shares and collected around 1.9 million dollars.
After the transaction, the oil company kept its interest of 53.43 in Pitkin.
It also increased its support in Forum Energy Limited, a London-listed company, for 12 million dollars following its subscription to new ordinary Forum shares of 39,350,920, raising the company’s direct shareholding to 69.5 percent from 48.8 percent along with its overall direct Forum interest and indirect Forum interest to 77.5 percent from 67.2 percent.
The interest was raised in Forum to 79 percent from 77.5 percent with a purchase of shares total to 1.185 million for 360 thousand dollars from First Pacific Co. Limited Subsidiary and a PXP Energy shareholder.
Forum’s primary asset is an interest of 70 percent in Service Contract 72 in Reed Bank. Indicating a more inflated economic interest in SC 72 for PXP to 52.8 percent from 41.2 percent.