PXP Energy Corporation (PXP) reported a narrower net loss in the first quarter of this year compared to the same period last year due mainly to foreign exchange gains and lower group overhead expenses.
In a disclosure to the Philippine Stock Exchange (PSE) on Thursday, PXP said it incurred a consolidated net loss attributable to equity holders of the parent company of P5.3 million in the first quarter against a corresponding loss of P11.8 million during the same period last year.
Consolidated net loss in the first quarter narrowed to P8.5 million from a net loss of P15 million a year ago, PXP said.
It said the lower net loss was due to a foreign exchange gain of P1.7 million earned by the parent company this year compared to a net foreign currency exchange loss of P6.8 million incurred last year, as well as the continued drop in group overhead to P10.1 million from P13.5 million in 2016.
On March 7, 2017, Pitkin Petroleum Ltd., a subsidiary of PXP, repurchased 11.43 million shares or 12.98 percent of the total issued shares of Pitkin at a price of $0.35 per share, for a total of consideration of $4.0 million.
For its part, PXP sold 6.1 million shares, or 12.98 percent of its Pitkin shares, and received approximately $2.1 million. Minority shareholders also sold 12.98 percent of their shares and received approximately $1.9 million. PXP’s 53.43 percent interest in Pitkin remains the same following the transaction.
On March 23, 2017, PXP increased its direct shareholding in oil and gas exploration firm Forum Energy Ltd. from 48.8 percent to 69.5 percent, thereby increasing PXP’s total direct and indirect interest in Forum from 67.5 percent to 77.5 percent.
The additional interest was acquired through a subscription to 39.35 million new ordinary shares of Forum. The new shares were issued at approximately $0.30 per share for a total consideration of $11.8 million which was funded through the conversion into equity of a portion of PXP’s $18.3 million loan to a subsidiary of Forum.
PXP, formerly Philex Petroleum Corp., is an upstream oil and gas company incorporated in the Philippines whose shares are listed on the PSE. The company directly and indirectly owns oil and gas exploration and production assets located in the Philippines, and indirectly owns an exploration asset located in offshore Peru.