PXP Energy Corporation reported a wider net loss in the first quarter of 2026, as higher financing costs and lower oil prices weighed on its earnings.

The company posted a core net loss of PHP 11.7 million, higher from PHP 9.2 million in the same period last year. Its net loss attributable to equity holders also widened to PHP 15.6 million, from PHP 9.4 million.

Despite the losses, PXP’s revenues slightly increased to PHP 20.9 million, up 2.4% from PHP 20.4 million a year earlier.

The increase was mainly due to a higher share in output from the Galoc oil field, where PXP’s participating interest rose to 4.69% from 3.21%.

However, this was partly offset by weaker market conditions. The average oil price dropped by 17.2% to USD 62.9 per barrel, while the volume of oil sold also slightly declined.

Costs also increased during the period. Petroleum production costs rose to PHP 18.9 million, while financing costs reached PHP 5.9 million.

The higher financing costs were driven by increased interest expenses and a PHP 3.8 million foreign exchange loss, as the peso weakened against the US dollar.

On the operations side, PXP reported the execution of Service Contract 91 in the Northwest Palawan Basin on April 13.

The contract is part of a consortium that includes PXP’s subsidiary, Forum Energy Philippines Corporation, along with several industry partners.

SC 91 has a 10-year term and is linked to the development of the Cadlao Field, which has estimated resources of 6.2 million barrels of oil.

Looking ahead, the company said it remains focused on managing its operations carefully, especially as production from the Galoc field nears the end of its life.

PXP added that it will continue to explore opportunities that could generate earlier income, while maintaining its longer-term exploration projects.

How can upstream firms like PXP manage rising costs and declining oil production while preparing for future projects?

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