PXP Energy Corporation widened its net loss in 2025 from the previous year, as lower output from the Galoc oil field and weaker crude prices pulled down revenues.

The upstream oil and gas firm reported a Core Net Loss of PHP 50.2 million for the year, higher than the PHP 33.3 million loss recorded in 2024. Consolidated Net Loss Attributable to Equity Holders of the Parent Company reached PHP 77.5 million, while total reported net loss stood at PHP 80.4 million.

Petroleum revenues declined to PHP 49.8 million from PHP 67.0 million the previous year. Sales volume fell 16.9% to 414,124 barrels, while the average realized crude price dropped 12.5% to USD 70 per barrel.

PXP said the weaker results were “primarily due to lower production volumes from the Galoc Field … softer crude prices, and higher financing and foreign exchange-related charges.”

The Galoc Field, now covered by Service Contract 88, continues to produce oil but at lower levels as it remains in a mature stage of its life cycle.

Total costs and expenses rose slightly to PHP 94.7 million from PHP 91.8 million in 2024. The company also recorded higher non-operating charges, including provisions for plug and abandonment and impairment, as well as higher net interest expense and foreign exchange losses.

Despite the financial pressure, PXP expanded its exploration portfolio during the year with the award of Service Contracts 80 and 81 in the Sulu Sea, and SC 86 in Northwest Palawan. It also executed SC 88, which ensures continued operations at the Galoc Field under a new contractual framework.

SC 40 in North Cebu remains under evaluation for possible farm-in arrangements, while SC 72 and SC 75 continue to be under force majeure.

Looking ahead, the company said it will remain focused on liquidity management, prudent capital allocation, and compliance with its contractual and regulatory obligations across its portfolio.

With production from its key asset declining and exploration commitments ahead, how will PXP balance financial discipline with its push to expand its upstream footprint?

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