Yanchang Petroleum International (346) H1 2024 earnings summary

Executive summary

• Revenue increased 46.3% year-over-year to HK$16.77 billion, driven by higher oil and by-products trading volume in China, but the Group recorded a net loss of HK$27.3 million compared to a profit of HK$12.81 million in the prior period, mainly due to lower upstream profits and foreign exchange losses.

• Upstream Canadian operations faced production declines and foreign exchange losses, while downstream China operations expanded sales volume but posted a small loss.

• No interim dividend was declared for the period.

Financial highlights

• Revenue: HK$16.77 billion (up from HK$11.47 billion year-over-year).

• Net loss: HK$27.3 million (vs. profit of HK$12.8 million prior year).

• Basic and diluted loss per share: HK cents (2.46) (vs. earnings per share of HK cents 1.40 prior year).

• Cash and bank balances: HK$256.9 million (31 December 2023: HK$226.19 million).

• Gearing ratio: 193.5% (31 December 2023: 173.3%).

• Current ratio: 83.5% (31 December 2023: 79.5%).

Outlook and guidance

• Management expects moderate global economic recovery in the second half of 2024, with oil prices subject to volatility from geopolitical and macroeconomic factors.

• The Group will maintain a prudent strategy, focus on asset optimization, and seek to enhance operational efficiency.