PXP Energy incurs P40.4-M loss in Q1

PXP Energy Corp. recorded a consolidated net loss of P40.4 million in the first quarter of 2020, compared with the consolidated net income of P7 million recorded in the same period a year ago.

In a disclosure on Thursday, the Pangilinan-led company attributed the net loss to the “substantial decrease in oil revenues and an impairment loss in SC (Service Contract) 14 C-1 Galoc.”

Consolidated petroleum revenues slumped by 79 percent to P6.1 million from P29.7 million, resulting from a 38-percent decrease in output and a 60-percent plunge in crude oil price in SC 14C-1 Galoc following substantially lower global demand amid the ongoing coronavirus disease 2019 (Covid-19) pandemic.

The firm also registered a 43-percent decline in consolidated cost and expenses at P26.7 million from P46.9 million. This was caused by lower depletion cost in the Galoc oil field following the decline in output.

But general and administrative expenses were higher year-on-year.

Under other income or charges, provision for impairment of assets amounted to P20.2 million related primarily to the lower-than-expected future returns in SC 14C1- Galoc after the recent crash in global crude oil prices.

Consolidated net loss attributable to equity holders of the parent, meanwhile, stood at P32 million against the consolidated net income attributable to equity holders of the parent at P11.1 million.

PXP shares tumbled by 26 centavos or 4.82 percent to end at P5.13 apiece on Thursday.