PXP Energy Corporation, a Philippine company that searches for and produces oil and gas, announced that it lost ₱77.5 million in 2025. This is bigger than the ₱30.9 million loss they had in 2024, according to a press release issued on February 27, 2025.
Think of PXP Energy like a treasure hunter, but instead of looking for gold, they search for oil and gas underground. When they find it, they sell it to make money. But in 2025, things didn’t go as well as they hoped.
Why Did PXP Energy Lose Money?
According to the company’s announcement, there were three main reasons for the bigger loss:
- Less oil produced: Their main oil field called Galoc produced less oil than before. They sold 414,124 barrels of oil in 2025, which is about 17% less than the 498,168 barrels they sold in 2024. The Galoc field is now considered “mature,” which means it’s been producing oil for a long time and is starting to run low – like a water bottle that’s almost empty.
- Lower oil prices: The price they got for each barrel of oil also dropped. They sold each barrel for an average of $70 in 2025, compared to $80 per barrel in 2024. That’s a 12.5% decrease.
- Higher costs: The company had to pay more for interest on borrowed money and lost money due to changes in foreign exchange rates (when Philippine pesos are exchanged for dollars or vice versa).
Because of selling less oil at lower prices, PXP Energy’s total revenue from petroleum dropped to ₱49.8 million in 2025 from ₱67.0 million in 2024.
New Exploration Areas: A Silver Lining
Despite the financial losses, 2025 brought some good news for PXP Energy. The Department of Energy (DOE) awarded the company three new areas where they can explore for oil and gas:
SC 80 and SC 81 are located in the Sulu Sea. These contracts are special because they’re managed together by the national government and the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). Think of these as new territories where PXP can go treasure hunting.
SC 86 (Octon-Malajon Block) is in Northwest Palawan. This area was previously known as SC 6A and is located in a region that has already proven to have oil and gas, making it potentially valuable.
Additionally, PXP’s Galoc Field got a fresh start with a new contract called SC 88. This new agreement, led by NPG Pty. Ltd. with PXP as a partner through its subsidiary Forum Energy Philippines Corp., covers approximately 83,450 hectares and replaces the old contract (SC 14C-1). This ensures the Galoc Field can continue producing oil under new terms.
Other Assets in PXP’s Portfolio
PXP Energy maintains several other exploration areas:
SC 40 (North Cebu Block) remains an important asset. The company is looking for partners (called “farm-in arrangements”) who might want to share the costs and risks of drilling in this area.
SC 72 and SC 75 are currently under “force majeure,” which is a fancy legal term meaning operations are suspended due to circumstances beyond the company’s control. PXP says they’re still following all the rules during this suspension period and working to protect the long-term value of these areas.
What’s Next for PXP Energy?
Looking ahead, PXP Energy says it will focus on managing its money carefully and meeting all its obligations to the government and partners. For the newly awarded exploration areas (SC 80, SC 81, and SC 86), the company will begin required technical work when funding is available.
The Galoc Field will continue producing oil under the new SC 88 contract, though production is expected to keep declining as the field ages – similar to how a battery produces less power as it gets older.
PXP Energy is a publicly listed company on the Philippine Stock Exchange, meaning ordinary Filipinos can buy shares and become part-owners of the company. The company’s main business is “upstream” oil and gas operations, which means they focus on finding and extracting oil and gas from the ground, rather than selling it at gas stations (which would be “downstream”).
