AYALA-LED ENEX Energy Corp. cut its net loss last year by about a third to P51.62 million from the P73.74 million booked in the previous year, largely due to lower expenses.
In its annual report filed last Friday, the company said that expenses fell by about half to P15.48 million from P30.77 million, thanks to lower management and professional fees, taxes, licenses and registration fees, and other expenses amid rationalization measures.
As in the previous year, ENEX did not record any revenues for 2023 as its Service Contract 55 (SC 55) remained under force majeure, barring the company from proceeding with any exploration activities in the West Philippine Sea.
In June of last year, ENEX told the stock exchange that it had been granted force majeure relief by the Department of Energy (DoE) "due to the operational and financial risks associated with conducting drilling operations in the Service Contract 55 contract area in the West Philippine Sea."
"Pursuant to Section 26.01 of SC 55, the DoE found basis to place SC 55 under force majeure from 6 December 2022 until such time that a clearance to proceed with exploration activities in the West Philippine Sea has been issued by the national government," it said.
SC 55, located southwest of Palawan with an area of 9,000 square kilometers, is believed to have several gas prospects.
Last December, the DoE approved the company's request to extend the deadline to drill a well under SC 55 for a period of 18 months.
"In a letter dated 1 December 2023, the Department of Energy granted the request of the company's subsidiary, Palawan55 Exploration and Production Corporation, to extend the deadline to drill a well under SC 55 by a period of 18 months," ENEX said in an earlier filing.
"[G]iven that SC 55 is currently still on force majeure, Palawan55 shall have a total of 23 months (the five months remaining plus the 18-month extension) from the lifting of force majeure to drill the committed well," it added.
"The company will [continue to] monitor the development in the geopolitical situation in the West Philippine Sea and the drilling market in the region," the company continued.
ENEX shares rose by P0.15, or 3.0 percent, to close at P5.15 per share last Friday.
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