Yanchang Petroleum International (346) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 was HK$9,994.5 million, down 40% year-over-year, mainly due to lower sales volumes and oil prices in both upstream and downstream business segments.

• The Group recorded a net loss of HK$27.8 million, similar to the HK$27.3 million loss in the prior year period, mainly due to losses in the Canadian oil and gas production business.

• No interim dividend was declared for the period.

• The Canadian oil and gas segment saw a 50% drop in revenue and a net loss, while the China oil trading segment also experienced significant declines in sales and profit.

Financial highlights

• Revenue: HK$9,994.5 million (2024: HK$16,771.6 million), a 40% decrease year-over-year.

• Cost of revenue dropped to HK$9,869.7 million from HK$16,547.8 million, in line with lower sales.

• Operating loss was HK$10.5 million, with finance costs of HK$18.2 million.

• Basic and diluted loss per share was HK2.59 cents (2024: HK2.46 cents).

• Cash and bank balances stood at HK$240.0 million as of 30 June 2025.

Outlook and guidance

• The Group expects continued volatility in global oil prices due to geopolitical tensions and economic uncertainty.

• Strategic focus will be on technological innovation in Canadian operations and sales network optimisation in China.

• Diversification and expansion into new business areas are planned to support long-term growth.