PXP Energy Corporation, a Philippine oil and gas company listed on the stock exchange, recently reported its financial results for the first six months of 2026. According to their press release issued on August 4, 2026, the company experienced bigger losses compared to the same period last year.

Understanding the Company’s Losses

Think of a company’s earnings like a piggy bank. If you’re putting in less money than you’re taking out, your piggy bank gets lighter. That’s what happened to PXP Energy.

The company reported a Core Net Loss of ₱25.7 million for the first half of 2026, which is worse than their loss of ₱21.1 million during the same period in 2025. The total loss attributable to the company’s main shareholders grew to ₱31.6 million from ₱22.8 million in the previous year.

Why Did They Lose Money?

There are three main reasons why PXP Energy lost more money:

1. They Sold Much Less Oil

PXP Energy’s petroleum revenues (money from selling oil) dropped significantly by 36%, falling to ₱21.2 million from ₱33.2 million the year before. This happened because:

• They sold 44.1% less oil – only 156,983 barrels in one shipment this year, compared to 280,742 barrels in two shipments last year
• The price of oil was also lower – they received an average of US$62.9 per barrel, which is 11.1% less than the US$70.74 per barrel they got in 2025

2. Higher Interest Payments

The company had to pay more interest on money they borrowed. Their net financing costs (the cost of borrowing money) jumped to ₱10.3 million from just ₱2.1 million the previous year. This included ₱4.3 million in interest expense, up from ₱3.1 million.

3. Foreign Exchange Losses

When the Philippine peso becomes weaker compared to the US dollar, it costs more pesos to pay back loans in dollars. PXP Energy lost ₱6.0 million because of this currency movement, compared to gaining ₱0.9 million the year before when the peso was stronger.

The Good News: Lower Operating Costs

On the positive side, since PXP Energy sold less oil, their production costs also went down to ₱19.3 million from ₱28.6 million. Their general and administrative expenses (day-to-day running costs) also decreased slightly to ₱24.1 million from ₱26.4 million.

New Oil Field Contract

In positive developments, the Department of Energy awarded PXP Energy and its partners a new Petroleum Service Contract (SC 91) on April 13, 2026. This contract covers 103,034 hectares in the Northwest Palawan Basin and includes the Cadlao Field.

The Cadlao Field is estimated to contain about 6.2 million barrels of oil that could potentially be extracted. The contract lasts for 10 years, giving the consortium time to evaluate, develop, and produce oil from this field. PXP Energy participates in this project through its subsidiary, Forum Energy Philippines Corporation.

Exploration Activities

PXP Energy is also working on two other service contracts (SC 80 and SC 81) in the Sulu Sea. The consortium, operated by Tetragon Energy Limited, has hired DUG Technology Ltd for US$1.45 million to reprocess old seismic data (underground images that help find oil).

This data covers more than 4,000 square kilometers and was originally collected between 2005 and 2013. Using modern technology, they hope to get better images to determine if there’s oil underground. Initial results are expected within six months, with final data coming in about one year.

Company’s Financial Position

Looking at PXP Energy’s balance sheet as of June 30, 2026:

• Total Assets: ₱3.29 billion (up from ₱3.18 billion at the end of 2025)
• Cash: ₱21.9 million (down from ₱40.1 million at year-end 2025)
• Notes Payable (short-term debt): ₱131.9 million (up from ₱105.8 million)
• Deferred Exploration Costs: ₱2.96 billion (representing money spent on finding new oil fields)

What’s Next for PXP Energy?

According to the company, they’re focusing on maintaining their operations and being careful with spending. Since their Galoc field (where they currently produce oil) is nearing the end of its productive life, they’re looking for opportunities to generate cash sooner while keeping their exploration projects active.

PXP Energy is also evaluating potential partnerships to help fund future activities and advance their other oil and gas assets. They continue to maintain their interests in SC 72 and SC 75, which are currently under Force Majeure (a legal term meaning operations are paused due to circumstances beyond their control).

About PXP Energy Corporation

PXP Energy is an upstream oil and gas company, which means they explore for and produce oil and gas. The company is incorporated in the Philippines and its shares trade on the Philippine Stock Exchange under the ticker symbol PXP.

This article is based on the company’s official press release and disclosures filed with the Philippine Stock Exchange’s Electronic Disclosure Generation Technology (PSE EDGE) system. For the complete and official version of the announcement, readers may visit the PSE EDGE website and search for the company’s filing directly.