MANILA – Losses incurred from a unit’s pullout from a project off Palawan weighed on the full-year financial results of Philex Petroleum Corporation.
In a disclosure to the Philippine Stock Exchange, Philex Petroleum said it incurred a loss of P448.7 million last year, a more than threefold increase from the P101.2 million in 2013.
Philex Petroleum blamed the wider loss on a P338.5 million impairment charge incurred after unit Pitkin Petroleum Plc pulled out of Service Contract 6A, which covers an oil field in offshore northwest Palawan.
Philex Petroleum owns 53 percent of Pitkin, which had opted not to enter the second phase of a farm-in agreement that would have given it a 70-percent share in SC 6A. Pitkin has yet to reassign its interest in the contract area.
Philex Petroleum’s revenue rose 47 percent to P307.9 million last year from P208.8 million in 2013, and largely came from its petroleum operations of subsidiary Forum Energy Plc. However, expenses amounting to P436 million, while lower than the previous year’s P444.2 million, were higher than revenue, thus swelling the company’s loss in 2014.
“The company will continue its efforts to reduce operating expenditures through the rationalization of the company’s business structure and asset portfolio, particularly in the current low oil-price environment,” Philex Petroleum said.
Its unit Forum (GSEC 101) Limited recently bagged Department of Energy approval of an extension of the second phase of its work plan at SC 72, which covers an area in West Palawan.
Philex Petroleum also expects to complete within ths first quarter the interpretation of 2D seismic data gathered from an offshore area northwest of Palawan that is covered by SC 75, where the company has a 50 percent interest.
InterAksyon.com is the online news portal of TV5, which like Philex Petroleum is chaired by Manuel V. Pangilinan.
Read more: http://www.interaksyon.com/business/105781/philex-petroleums-loss-widens-in-2014