Financial and Operating Results
15 November 2019
2
9M 2019 Highlights
2
Approved ECC and DMPF for underground sub-level cave mining method for
the Silangan Project paves way for the commencement of Early Works
Program, preparatory to full development phase
Ongoing search for possible strategic partners for Silangan Project
Reported net income of P439 million for the 9M of 2019
Core net income of P58 million for the third quarter of 2019, reversing year-
to-date results to core net income of P39 million.
3
Operating Statistics
• Mining Operations: Higher metal output for Q3 2019 due to continued operational
efficiencies
Q1
2019
Q2
2019
Q3
2019+/-
(Q3 vs Q2)
9M
2019
9M
2018+/-
Tonnes Milled (‘000) 1,832 1,973 2,134 8% 5,939 6,529 -9%
Production:
Gold – ozs 10,493 13,182 14,450 10% 38,125 48,929 -22%
Copper – lbs (‘000) 5,727 6,280 6,852 9% 18,859 20,509 -8%
Recovery:
Gold 74% 78% 78% 0% 77% 76% 1%
Copper 81% 82% 81% -1% 81% 78% 4%
Ore Grade:
Gold – gms/dmt 0.239 0.266 0.272 2% 0.260 0.307 -15%
Copper - % 0.175 0.176 0.179 2% 0.177 0.183 -3%
Average Realized Prices:
Gold – (US$/oz) 1,304 1,329 1,445 9% 1,365 1,304 5%
Copper – (US$/lb) 2.96 2.66 2.57 -3% 2.67 3.00 -11%
4
Financial Summary
• Operating Income: Continuous improvement in quarterly production and higher gold prices
• Core Net Income: Q3 core net income of P58 million reversed year-to-date results from a loss in
the first half into P39 M core net income for the 9M 2019
(in Php mn) Q1
2019
Q2
2019
Q3
2019+/-
9M
2019
9M
2018+/-
Gross Revenues 1,613 1,752 1,943 11% 5,308 6,586 -19%
Smelting Charges 137 139 165 19% 442 531 -17%
Net Revenues 1,476 1,613 1,777 10% 4,866 6,055 -20%
Costs and Expenses 1,566 1,567 1,677 7% 4,809 5,087 -5%
Operating Income (90) 46 101 120% 57 968 -94%
Other Income (Charges) 294 143 (2) -101% 436 (172) -353%
Net Income 206 185 48 -74% 439 570 -23%
Core Net Income (Loss) (112) 93 58 -38% 39 687 -94%
EBITDA 217 443 475 7% 1,135 2,276 -50%
Margins:
EBITDA Margin (%) 13% 25% 24% -1% 21% 35% -14%
Net Income Margin (%) 13% 11% 2% -9% 8% 9% -1%
6
Capital Expenditure
1,387 1,374
• Silangan Project: Mainly for the completion of the DFS covering the
Boyongan deposit
5 5
6
• Total Assets: Silangan Project
accounts for 59% of total assets
• Short-Term Debt: Additional loan
availments for Silangan’s DFS
completion and Early Works
Program
Balance Sheet (in Php mn) Sep-19 Dec-18
Cash & Cash Equivalents 280 871
Receivables & Others 3,644 3,582
Total Current Assets 3,924 4,453
Property, Plant & Equipment 4,915 5,404
Deferred Exploration Costs 26,256 25,448
Others 5,389 5,406
Total Assets 40,483 40,712
Short-Term Debt 2,644 2,156
Others 2,744 4,104
Total Current Liabilities 5,388 6,260
Bonds Payable 7,624 7,333
Deferred Tax Liabilities & Others 3,359 3,419
Total Liabilities 16,371 17,012
Total Equity 24,112 23,699
PXP Energy Corporation
Financial Highlights and
Operational Updates
• 52% decrease in gross revenue due to:
Nil lifting in SC 14C-1 Galoc; Shut-in of SC 14 Nido and
Matinloc wells; Lower average crude price
• 46% decrease in cost and expenses due to:
Lower depletion due to nil lifting in Galoc and
Plug and Abandonment of SC14 Nido and Matinloc
• 56 % lower net loss due to:
Higher other income, lower cost and expenses offset by lower
revenue from petroleum
8
Financial Highlights – Profit and Loss
(in PhP millions) 9M 2019 9M 2018
% Inc
(Dec)
Gross revenue ₱ 51 ₱ 106 -52%
Cost and expenses 94 174 -46%
Loss from operations (43) (68) -36%
Other income - net 21 18 15%
Reported net income (loss) ₱ (22) ₱ (49) -56%
9
Financial Highlights – Financial Position
As of Sep 30 ,
2019
(Unaudited)
As of Dec 31 ,
2018
(Audited)
% Inc
(Dec)
Due to affiliate ₱ 739 ₱ 2,125 -65.2%
Accounts payable & others 27 34 -22.8%
Current liabilities 766 2,160 -64.5% Deferred income tax liability 1,114 1,113 0.1%
Others 200 192 4.1%
Non-current liabilities 1,314 1,305 0.7%
Total l iabi l ities 2 ,080 3 ,465 -40 .0% Capital stock 1,960 1,960 0.0%
Additional Paid-in Capital 2,817 2,821 -
Subscription receivable (924) (2,311) -
Deficit (1,383) (1,374) 0.7%
Others 237 276 -14.0%
Non-controlling interest 2,384 2,410 -1.1%
Total equity 5,090 3,782 34.6%
Tota l Liab i l ities and SHE ₱ 7 ,170 ₱ 7 ,247 -1 .1%
LIABILITIES AND STO CKHO LDERS’ EQUITY
(in PHP millions)
As of Sep 30 ,
2019
(Unaudited)
As of Dec 31 ,
2018
(Audited)
% Inc
(Dec)
Cash & cash equivalents ₱ 269 ₱ 342 -21.5%
Receivables and other CA 68 86 -21.2%
Current assets 337 429 -21.4%
Deferred exploration costs & other NCA 6,833 6,818 0.2%
Tota l assets ₱ 7 ,170 ₱ 7 ,247 -1 .1%
ASSETS ( in PHP mil l ions)
10
Operations Update
10
SC 6B
SC 14C2
SC 6A
Cadlao
SC 14C1
SC 14B
SC 14A
TUMBES BASIN, OFFSHORE PERU
10
SC 72 Recto Bank (Forum 70%) Under Force Majeure (FM) since December 15, 2014.
Forum will have 20 months upon lifting of the FM to drill the two (2) commitment wells.
The Sampaguita Field Re-evaluation is being undertaken by VGS Consultancy. Scope of
work includes 3D seismic interpretation of the PSDM newly reprocessed data, update of
volume calculation, petrophysics study, economic analysis, and well drilling strategies.
In accordance with the Memorandum of Understanding (MOU) on cooperation on oil and
gas development signed in November 2018, the Philippines and China recently created an
inter-governmental Steering Committee to be composed of government officials from both
countries. Under the MOU, the Steering Committee is tasked to create Working Group(s) on
the entrepreneurial, technical, and commercial aspects of the planned joint exploration
The Company looks forward to the immediate creation of such working groups for the
Company’s SC 72 Recto Bank and SC 75 NW Palawan blocks, which are both currently
under FM.
SC 75 NW Palawan (PXP 50%) Under FM since December 27, 2015.
Sub-Phase 2 will have a term of 18 months upon lifting of FM with the acquisition of 1,000
sq. km of 3D seismic data as the minimum work commitment.
SC 40 North Cebu (Forum 66.67%) Gravity data modeling is underway using land gravity data acquired in 2018.
Operations Update 1/3
11 15 November 2019
Operations Update 2/3
12
SC 74 Linapacan Block (PXP 70%) Completed the gravity modeling and seismic interpretation of MC2D data.
A pilot test biostratigraphic analysis is being conducted by Corelab Malaysia on select rock
samples collected during the fieldwork in the Calamian Islands.
The SC 74 and SC 14C2 (West Linapacan) Consortia have completed the Rock Physics
and pilot test Quantitative Interpretation (QI) studies over the Linapacan and West
Linapacan areas with Ikon Science as contractor. Results of the test QI are being
reviewed.
SC 6A Octon Block (PXP 5.56% / Forum 5.56%) Completed the attribute analysis.
Ongoing G&G studies to identify a final well location.
SC 6B Bonita Block (Forum 2.4546%) On 17 October 2019, the Farm-In Agreement (FIA), Deed of Assignment and transfer of
operatorship from Philodrill to Manta Oil Company Ltd. (Manta) were approved
conditionally by the DOE, requiring Manta to submit additional financial documents.
Under the FIA, Manta will carry the JV up to First Oil to earn 70% interest. Forum’s interest
will be reduced to 2.4546% upon completion of the farm-in.
15 November 2019
SC 14C1 Galoc (Forum 2.27%) Continued production in Galoc Field. Cumulative production from October 2008 to
October 2019 stood at 21.97 million barrels of oil.
The Consortium led by Galoc Production Company (GPC) plans to install a Condensate
Recovery Unit (CRU) onboard the FPSO Rubicon Intrepid in 1H 2019 to recover 15- 20
barrels of condensate for every 1 mmscf of gas produced.
Ongoing engineering studies are being undertaken to bring the Galoc-4 well back online.
SC 14C2 West Linapacan (Forum 9.103%) Ongoing QI studies with the SC 74 Consortium.
Peru Block Z-38 (Pitkin 25%) Karoon and Stena Forth entered into a Rig Assignment Agreement in preparation for
drilling the Marina-1X exploration well planned for 1Q 2020. The Marina prospect has an
unrisked best estimate prospective resource of 256 mmbbls (64 mmbbls net to Pitkin).
This prospect will be the first well drilled in Block Z-38. Pitkin is carried in the cost of
Marina-1X and a second future well under a Farm-in Agreement signed with Karoon in
2008.
The participating interest in Z-38 are as follows: Karoon Gas – 40%, Tullow Oil – 35%,
and Pitkin Petroleum – 25%
Operations Update 3/3
13 15 November 2019
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