Yanchang Petroleum International (346) H1 2026 earnings summary

Executive summary

• Recorded a net loss of HK$40.2 million for the six months ended 30 June 2026, compared to a loss of HK$27.8 million in the prior year period.

• Revenue declined 29.7% year-over-year to HK$7.02 billion, mainly due to lower trading volumes in China and reduced oil and gas production in Canada.

• The Canadian upstream business faced operational challenges, including extreme weather, third-party constraints, and capital limitations, resulting in a 30.3% drop in production volume and a net loss of CAD7.44 million.

• The downstream oil products business in China saw a 32% decrease in sales volume and a 33.8% drop in revenue, but managed to achieve a net profit of RMB3.21 million.

• No interim dividend was declared for the period.

Financial highlights

• Revenue: HK$7,024.4 million (down from HK$9,994.5 million year-over-year).

• Net loss: HK$40.2 million (vs. HK$27.8 million loss in prior year period).

• Basic and diluted loss per share: HK cents 3.76 (vs. 2.59 in prior year period).

• Cash and bank balances: HK$121.0 million as of 30 June 2026 (up from HK$63.7 million at year-end 2025).

• Gearing ratio: 200.9% (down from 375.5% at 31 December 2025).

• Current ratio: 61.4% (down from 99.9% at 31 December 2025).

Outlook and guidance

• The global energy market is expected to remain volatile due to ongoing geopolitical risks, supply-demand imbalances, and the low-carbon transition.

• The company will focus on stabilizing its core oil and gas business, strengthening risk controls, and seeking new business opportunities.

• No specific quantitative guidance was provided for the remainder of 2026.