United Energy Group (467) investor relations material

Executive summary

• Profit attributable to owners rose 28.7% year-over-year to HK$952.7 million, driven by higher realized oil prices and increased trading activity despite lower production volumes in Pakistan and Iraq.

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

• Gross profit surged 67.9% to HK$2.36 billion, with gross margin improving to 21.5% from 17.1% year-over-year.

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

Financial highlights

• Adjusted EBITDA rose 2.4% to HK$3.51 billion; EBITDA remained stable at HK$3.68 billion.

• Basic EPS increased 28.8% to 3.71 HK cents.

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

• Operating cash inflow was HK$2.73 billion, nearly flat year-over-year.

• Gearing ratio improved to 12.1% from 15.3%; current ratio at 1.05x.

Outlook and guidance

• 2026 global oil demand expected to rise by 0.8 mmbbld; oil prices remain elevated but may moderate as supply normalizes.

• Group targets 2026 average daily gross production of 176,000–200,000 boed and working interest production of 105,400–118,900 boed.

• Capital expenditure guidance tightened to US$500–600 million for 2026, with focus on cash flow management.

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