United Energy Group (467) H2 2024 earnings summary

Executive summary

• Achieved a turnaround from a net loss of HK$1,707 million in 2023 to a net profit of HK$1,558 million in 2024, driven by increased production and reduced impairments.

• Turnover rose 28.9% year-over-year to HK$17,523 million, mainly due to growth in the trading business.

• Average daily working interest production increased 7.6% to 108,079 boed, with significant contributions from MENA assets.

• Gross profit margin declined to 18.8% from 32.7% due to lower net realized prices and higher depreciation.

Financial highlights

• Net profit attributable to owners was HK$1,558 million, reversing a prior year loss.

• EBITDA surged 138.6% to HK$7,173 million; adjusted EBITDA fell 10.1% to HK$7,992 million.

• Gross profit dropped 25.6% to HK$3,302 million; turnover up 28.9% to HK$17,523 million.

• Operating expenses for E&P rose 5.3% to HK$1,353 million; finance costs increased 19.6% to HK$351 million.

• Final dividend of HK5 cents per share proposed, following a special dividend of HK4 cents paid.

Outlook and guidance

• 2025 production targeted at 104,200–120,600 boed working interest; capex planned at US$750 million.

• MENA assets expected to drive growth, with Block 9 in Iraq targeting 130,000 boed gross.

• Pakistan gas production faces supply decline but demand remains robust; new blocks awarded.

• Continued focus on financial discipline and capital optimization.