Financial Performance
PXP Energy Corporation (“PXP” or the “Company”) reported consolidated petroleum revenues of ₱63.9 million for the nine-month period ended September 30, 2026, up 26.9% from ₱50.3 million in the same period last year. The increase was supported by the higher participating interest in Galoc under SC 88, held through Forum Energy, which rose to 4.69% from 3.21% effective December 18, 2025, and by a 2.3% improvement in the effective average crude price to US$72.13 per barrel (9M2025: US$70.48 per barrel). These more than offset an 11.9% reduction in total Galoc liftings, with two cargoes totaling 364,788 barrels during the period compared with three cargoes totaling 414,124 barrels in 9M2025.
The higher Galoc revenue narrowed the Company’s Core Net Loss to ₱30.9 million, from ₱32.8 million in 9M2025. Net Loss Attributable to Equity Holders of the Parent Company rose to ₱39.5 million (9M2025: ₱37.9 million) and Consolidated Net Loss to ₱40.7 million (9M2025: ₱39.8 million), mainly due to a higher unrealized foreign exchange loss and higher net interest expense, partly offset by higher Galoc revenue net of production costs and the absence of non-recurring expenses recorded in 9M2025.
Petroleum production costs rose to ₱48.7 million (9M2025: ₱40.7 million), consistent with the higher Galoc interest and the timing of liftings. General and administrative expenses eased to ₱40.1 million (9M2025: ₱43.6 million), as the comparative period included ₱4.0 million of non-recurring expenses; excluding these, general and administrative expenses were broadly flat.
Net interest expense increased to ₱7.1 million (9M2025: ₱4.9 million), and the Company recognized a net foreign exchange loss of ₱8.6 million (9M2025: ₱1.2 million), principally unrealized, as the Philippine peso weakened against the U.S. dollar on its U.S. dollar-denominated liabilities.
Operational Highlights
On April 13, 2026, the Department of Energy (“DOE”) executed Petroleum Service Contract (“SC”) No. 91 in the Northwest Palawan Basin with the consortium composed of Nido Petroleum Philippines Pty. Ltd., The Philodrill Corporation, Oriental Petroleum and Minerals Corporation, Alcorn Petroleum and Minerals Corporation, and PXP’s subsidiary, Forum Energy Philippines Corporation. The execution of SC 91 was disclosed by the Company on April 21, 2026, upon receipt of a transmittal letter from the DOE on the same date.
SC 91 further strengthens the Company’s upstream portfolio in Northwest Palawan, a proven petroleum province where PXP and its subsidiaries continue to maintain strategic exposure. SC 91 has a 10-year term, aligned with the estimated timeframe required to appraise, develop, and produce the Cadlao Field, which has estimated Contingent Resources (2C) of 6.2 million barrels of oil. The Company will participate in the work program under SC 91 in accordance with the terms of the Service Contract and applicable DOE requirements.
In SC 80 and 81, located in the Sulu Sea, PXP Energy, as a consortium member in the two service contracts operated by Tetragon Energy Limited, has commenced the initial phase of the consortium's exploration program following the award of a US$1.45 million contract to DUG Technology Ltd (DUG) to reprocess more than 4,000 square kilometers of existing 3D seismic data, together with up to 3,000 line-kilometers of 2D seismic data. The seismic data, originally acquired between 2005 and 2013, will be reprocessed using advanced seismic imaging techniques to improve data quality and enhance the evaluation of the permits' hydrocarbon potential. Initial fast-track seismic products are expected in Q1 2027, with the final processed dataset expected to be delivered in late Q3 2027. |
Outlook
With Galoc production approaching the end of field life, the Company remains focused on maintaining operational readiness and exercising financial discipline across its portfolio. PXP continues to assess opportunities that may support earlier cash generation while preserving its longer-term exploration and development potential.
In parallel, the Company is reviewing its medium-term portfolio strategy and evaluating appropriate funding and partnership opportunities to support its ongoing activities and future growth.
Meanwhile, PXP is maintaining its interests in SC 72 and SC 75, which remain under Force Majeure, while advancing activities across its service contract portfolio in accordance with government-approved work programs and applicable regulatory requirements.
About PXP Energy Corporation
PXP is an upstream oil and gas company incorporated in the Philippines whose shares are listed on the Philippine Stock Exchange.
For further information, please contact:
Mark H. Rilles
Finance Controller
PXP Energy Corporation
Telephone: (632) 8631-1381
Email: [email protected] |
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