United Energy Group (467) H2 2025 earnings summary

Executive summary

• Turnover increased by 7.8% year-over-year to HK$19.19 billion, driven by growth in trading and clean energy segments, despite lower realized oil prices and a challenging market environment.

• Net profit attributable to shareholders fell 28.3% to HK$1.12 billion, mainly due to lower average realized sales prices and higher impairment charges.

• Strategic acquisitions in Egypt (Apex) and Pakistan (UEGBIH) expanded the asset base and production capacity, positioning the group among the top five international oil producers in Egypt.

Financial highlights

• Gross profit decreased by 5.4% to HK$3.38 billion, with gross margin dropping to 17.6% from 20.1% year-over-year.

• EBITDA was HK$6.45 billion, down 13.4%, and adjusted EBITDA was HK$7.29 billion, down 8.8% year-over-year.

• Basic EPS declined 28% to HK4.35 cents.

• Net cash inflow from operating activities was HK$6.16 billion, a 17% decrease year-over-year.

• No final dividend proposed for 2025 (prior year: HK5 cents per share).

Outlook and guidance

• 2026 production guidance: average daily gross production of 179,000–213,000 boed and working interest production of 105,400–125,300 boed.

• Capital expenditure planned at US$500–650 million, focused on exploration, development, and construction.

• Management remains cautious amid geopolitical risks, especially in the Middle East, and is committed to financial discipline and operational agility.