ENEX Energy Corp. has slashed its net losses in 2024 while pivoting toward cleaner energy through its stake in Batangas Clean Energy, Inc. (BCEI), a joint venture developing a 1,100 MW power plant that can use natural gas or green hydrogen. The company’s progress comes as its core petroleum project, Service Contract 55 (SC 55) in offshore West Palawan, remains stalled due to geopolitical tensions in the West Philippine Sea.
Its latest SEC filing showed that ENEX’s subsidiary, Palawan55 Exploration & Production Corporation, holds a majority interest in SC 55, which has been under force majeure since mid-2023, as declared by the Department of Energy (DOE). The DOE extended Palawan55’s drilling deadline, reflecting operational risks in the region. This pause shields ENEX from immediate costs but underscores the uncertainty of offshore exploration.
In contrast, BCEI offers a stable growth path. The plant, still in pre-development, aims to deliver reliable power to Luzon, aligning with the Philippines’ clean energy goals. Income from a BCEI service agreement helped ENEX reduce its losses from 2023 levels, bolstered by stronger cash reserves. ACEN Corporation’s subscription to millions of non-voting preferred shares in 2024, partly by converting loans into equity, cleared significant debt, enhancing ENEX’s financial flexibility to support BCEI.
ACEN’s investment strengthens ENEX’s balance sheet, enabling its dual focus on sustainable power and exploration. By exiting less viable contracts in prior years, ENEX is streamlining efforts toward high-potential ventures, positioning itself to balance clean energy innovation with the challenges of traditional oil and gas.
Can ENEX lead the Philippines’ energy transition while navigating exploration hurdles? Share your views on how it can shape a sustainable future. Let’s discuss!
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