PXP Energy Corporation reported a consolidated net loss of PHP 39.8 million for the nine months ended September 30, 2025, as lower production from its Galoc oil field and a weaker average realized crude price of USD 70 per barrel offset gains from new exploration awards.

In a disclosure to the Philippine Stock Exchange, the Pangilinan-led upstream firm said consolidated petroleum revenues dropped to PHP 50.3 million from PHP 64.8 million a year earlier, reflecting a 13.5% decline in sales volumes (414,124 barrels versus 478,999 barrels in 2024) and lower realized prices. Core net loss reached PHP 32.8 million, while total costs and expenses rose to PHP 84.2 million, partly due to higher interest charges and a one-off overhead increase in a foreign subsidiary.

PXP said its Galoc operations “continued to deliver stable output despite being at the tail end of field life,” though natural decline remains a key constraint on earnings.

In October 2025, the Department of Energy awarded three new petroleum service contracts to PXP’s joint ventures. These include SC 80, which spans about 780,000 hectares in the Sulu Sea and holds previously identified contingent resources of 470 billion cubic feet of gas and 5.4 million barrels of condensate; SC 81, covering roughly 532,000 hectares in the same basin and located in an area with prior oil and gas shows; and SC 86, the Octon Block in Northwest Palawan, covering around 132,000 hectares adjacent to Galoc, where PXP and subsidiary Forum Energy jointly own a 13.6878% interest.

PXP chairman Manuel V. Pangilinan said earlier this month that the new awards mark a significant step in expanding the company’s offshore presence and support the Philippines’ energy self-sufficiency goals.

As of end-September, PXP’s cash balance stood at PHP 57.5 million, with total assets of PHP 3.18 billion and liabilities of PHP 523 million. The company said it is preserving liquidity while preparing technical work programs for the new blocks in coordination with the DOE and the Bangsamoro Autonomous Region in Muslim Mindanao.

A Force Majeure remains in effect over its West Philippine Sea service contracts SC 72 and SC 75 due to geopolitical factors. PXP said it “remains committed to the long-term potential” of those frontier areas while exploring opportunities to participate in producing or near-term development assets to rebuild cash flow.

What do you think — can PXP’s new offshore blocks help the company turn the corner from legacy decline to a fresh exploration-led growth cycle? 

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