Philex Petroleum losses down to Php 118.1 M in Q3

MANILA, Oct. 28 (PNA) — Philex Petroleum Corp. incurred a consolidated net loss of Php 118.1 million for the nine-month period ending Sept. 30, 2015, compared to a net loss of Php 376.9 million during the same period last year.

Net loss attributable to equity holders of the parent company amounted to Php 65.9 million from Php 188.8 million during the same period last year.

The net loss primarily resulted from lower petroleum revenues contributed by its subsidiary, Forum Energy Plc., due to a drop in crude oil prices and a lower production from Service Contract 14C1 Galoc.

Net loss decreased year-on-year due to a charge in impairment to Pitkin’s SC6a – Octon during the same period last year.

During a Special Shareholders’ Meeting held on Aug. 11, 2015, the pledge of Philex Petroleum’s shareholdings in subsidiaries to Philex Mining Corporation was approved by shareholders, representing at least 2/3 of the outstanding shares of the Company.

On Aug. 11, 2015 Philex Petroleum confirmed that the Department of Energy has granted a Force Majeure on Service Contract 75. Under the terms of the force majeure, all exploration work at SC75 would immediately be suspended effective from the end of its first sub-phase (“SP-1”) on Dec. 27, 2015 until the date the DOE notifies the Company to resume petroleum-related activities.

As a result, the second sub-phase of SC75 has been put on hold until further notice. The terms of SP-2 and all subsequent sub-phases will be extended by the term of the force majeure.

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. (PNA)