United Energy Group (467) investor relations material

Executive summary

• Profit attributable to owners rose 28.7% year-over-year to HK$952.7 million for H1 2026, driven by higher realized oil prices, expanded trading, and clean energy businesses, despite lower production in Iraq and Pakistan.

• Turnover increased 33.7% to HK$10.94 billion, with trading and clean energy segments contributing significantly to growth.

• Gross profit margin improved to 21.5% from 17.1% year-over-year, reflecting higher sales prices and clean energy growth.

• Adjusted EBITDA rose 2.4% to HK$3.51 billion, supported by price gains and clean energy contributions.

• Clean energy business expanded, notably in Egypt and Pakistan, offsetting declines in oil and gas production.

Financial highlights

• Turnover: HK$10.94 billion (+33.7% YoY); gross profit: HK$2.36 billion (+67.9% YoY); gross margin: 21.5%.

• Net profit: HK$952.7 million (+28.7% YoY); basic EPS: 3.71 cents (2025: 2.88 cents).

• Adjusted EBITDA: HK$3.51 billion (+2.4% YoY); operating cash inflow: HK$2.73 billion (flat YoY).

• Net assets grew 7.1% to HK$14.12 billion; total assets up 1.8% to HK$29.67 billion.

• No interim dividend declared for H1 2026.

Outlook and guidance

• 2026 production target: 176,000–200,000 boed gross, 105,400–118,900 boed working interest.

• Capital expenditure guidance: US$500–600 million, down from US$750 million in 2025.

• Segment guidance: Pakistan 24,600–27,100 boed, Iraq 61,000–68,400 boed, Egypt 19,800–23,400 boed.

• Anticipates normalization of Iraq oil lifting and shipping routes, supporting cash flow recovery.

• Expects continued operational resilience from diversified asset base and disciplined financial management.