ENEX Energy Cuts Losses, Bolsters Clean Energy Shift with Batangas Hydrogen-Ready Plant

ENEX Energy Corp. has significantly narrowed its net losses for 2024, as it pivots towards cleaner energy through its stake in Batangas Clean Energy, Inc. (BCEI), a joint venture developing a 1,100 MW natural gas and hydrogen-ready power facility in Batangas.

In a regulatory filing with the Securities and Exchange Commission (SEC), ENEX disclosed that the shift to clean energy has helped strengthen its financial position, despite continued challenges in its upstream oil and gas activities.

The company’s primary petroleum asset, Service Contract 55 (SC 55) in offshore West Palawan, remains under a force majeure status, declared by the Department of Energy (DOE) in mid-2023 due to heightened geopolitical tensions in the West Philippine Sea. ENEX’s upstream subsidiary, Palawan55 Exploration & Production Corporation, holds the majority stake in SC 55. The DOE’s decision to extend the drilling deadline reflects ongoing risks in the region, pausing major investments but also shielding ENEX from immediate exploration costs.

Meanwhile, BCEI is emerging as a promising growth engine for the company. Still in its pre-development phase, the 1,100 MW plant is designed to support Luzon’s baseload demand using natural gas, with future capability to integrate green hydrogen—a move aligned with the Philippine government’s clean energy transition goals. Revenue from a BCEI-related service agreement has contributed to reducing ENEX’s net loss and shoring up cash reserves.

A major contributor to ENEX’s improved financial flexibility in 2024 is the equity investment by ACEN Corporation, which subscribed to millions of ENEX’s non-voting preferred shares. Part of the transaction involved converting loans into equity, thereby reducing ENEX’s debt load and strengthening its balance sheet.

Company officials say the capital infusion positions ENEX to simultaneously pursue sustainable energy development while managing legacy oil and gas interests. The firm has also exited several non-core contracts in recent years, focusing resources on ventures with high potential for long-term value.

As ENEX moves forward, it aims to maintain a dual strategy—balancing clean energy innovation through BCEI with cautious oversight of its upstream exploration portfolio amid geopolitical uncertainties.