Currency woes widen Philex Petroleum losses in H1
MANILA, Philippines - The net losses of upstream oil and gas company Philex Petroleum Corp. widened to P225.2 million in the first 6 months of 2013 from P80.5 million a year ago.
"The increase in net loss was mainly due to foreign currency conversion losses on the company’s dollar denominated advances from Philex Mining," the firm said in a disclosure to the exchange on Friday, July 26.
The Manuel V. Pangilinan-company said it incurred charges of P118.86 million, of which P99.15 million were foreign exchange losses.
Below are highlights of the financial performance of the company in the first half:
- Revenues - up 31% to 96.3 million from P73.5 million
- Cost and expenses - up 56% to P231.9 million from P148.97 million
Below are the recent deals entered into by the company:
- Pitkin Petroleum Plc. completed the P2.1 billion sale of all its interests in Delaware firm Vietnam American Exploration Company LLC, on On July 16. Philex Petroleum's P200 million gain will be reflected in the second half of 2013. Pitkin is a UK-registered upstream oil and gas company with operations in the Philippines, Vietnam, Peru and the USA. It is a 50.28% owned subsidiary of Philex Petroleum.
- Pitkin signed on July 10 the Service Contract for Area 5 in the Northwest Palawan basin, subject to signature of the Department of Energy.
- The Environmental Impact Study to drill up to 10 exploration and 10 appraisal wells in Peru Block Z-38, in which Pitkin holds a 25% interest, was approved on June 19, 2013. Start of drilling of at least two wells is currently expected to start in first half of 2014
- Philex Petroleum increased its stake in Pitkin from to 50.28% from 18.46% on April 5. This was via purchase of both new and existing shares at a price of US$0.75 per share, amounting to US$34.80 million (Php 1.43 billion)
- Philex Petroleum is the operator of the Area 4 Northwest Palawan block it won with partners PNOC Exploration Corporation, and PetroEnergy in February following the 4th Philippine Energy Contracting Round bidding in February. The Service Contract for Area 4 is still subject to signature.
- The Department of Energy granted Philex Petroleum a 2-year extension (ending August 2015) to complete the exploration work program for the Second Exploration Sub-Phase of Service Contract 72 Recto Bank (“SC 72”). Forum Energy Plc has a 70% interest in SC 72.
Philex Petroleum is 64.7% owned by Philex Mining Corp, the Philippines' biggest gold producer. - Rappler.com