PXP Energy Corp. is actively assessing the feasibility of the Dalingding prospect under Service Contract (SC) 40, located onshore in northern Cebu. The company remains open to exploring additional oil and gas opportunities across the Philippines.
Simultaneously, PXP and its joint venture partners are eagerly awaiting the imminent awarding of Pre-Determined Areas (PDA) PDA-BP-2 and PDA-BP-3, both located offshore in the southwestern part of the Sulu Sea basin.
Despite the extended force majeure affecting Service Contracts 72 and 75, PXP and its affiliate, Forum Energy Limited (FEL), remain committed to resuming exploration activities in these blocks.
For the first quarter of 2025, PXP reported a core net loss of ₱9.2 million (compared to a net loss of ₱2.6 million in Q1 2024). The loss was attributed to reduced sales volume and a decrease in the average price of crude oil from Galoc operations, as well as higher overhead costs. The consolidated net loss attributable to equity holders of the parent company totaled ₱9.4 million (compared to a net loss of ₱2.6 million in Q1 2024).
Consolidated revenues for the period declined by 22.4%, amounting to ₱20.4 million (down from ₱26.3 million in Q1 2024). This decrease was driven by a 20.0% drop in oil output from 196,826 barrels (bbls) in Q1 2024 to 157,381 bbls in the current period, along with a 5% decline in the average crude oil price, which fell from US$80.00 per barrel in Q1 2024 to US$76.30 per barrel.
Total consolidated costs and expenses increased to ₱29.7 million (from ₱27.1 million in Q1 2024). This rise was largely due to higher petroleum production costs, which amounted to ₱17.3 million (up from ₱16.2 million in Q1 2024), and increased overhead costs of ₱12.4 million (up from ₱10.8 million in Q1 2024), driven by nonrecurring expenses in a foreign subsidiary.
In a significant corporate development, on February 13, 2025, the Securities and Exchange Commission (SEC) approved the valuation of FEL shares held by Tidemark Holdings Limited (Tidemark) at ₱1.56 billion. Following the approval and the completion of closing conditions, PXP issued 430.24 million common shares to Tidemark on March 18, 2025, for ₱3.62 per share, in exchange for 24.13 million FEL shares.
This share swap was conducted at an exchange ratio of 17.8337 PXP shares for each FEL share. As a result, PXP’s effective ownership in FEL increased to 97.88%, while its stake in SC 72 rose to 68.5%. Tidemark, in turn, became a shareholder of PXP with an 18% ownership interest.
