Yanchang Petroleum International Issues Positive Profit Alert; Expects to Record a Profit of around HK$358 million for the Year of 2021
The Group achieved a turnaround in profits for the year of 2021, which was mainly attributable to the combined effect of the profit of around HK$ 7 million generated from the oil and gas production business in Canada and the net aggregate profit of around HK$ 41 million generated from the oil and by-products trading business in the PRC. In addition, the Group recorded a net impairment recovery of around HK$ 333 million on its oil and gas assets, and accrued administration and interest expenses of around HK$ 23 million.
Mr. Feng Yinguo, Chairman of Yanchang Petroleum International, said, “The Group is encouraged by the successful turnaround of the business in 2021. Benefited from the global economic recovery and the sharp rebound of the oil prices resulting from strong oil demand coupled with the supply shortage, the performance of the Group's upstream and downstream businesses was improved. Going forward, the Group will actively coordinate and propel production and operation, improve the quality and efficiency, and capitalize on the favorable environment of the structural recovery of the international oil and gas industry, thereby maximizing the benefits of our shareholders.”
About Yanchang Petroleum International (Stock Code: 00346)
Yanchang Petroleum International is principally engaged in the following activities (i) exploration, exploitation, and operation of oil and gas; and (ii) fuel oil trading and distribution. In its upstream operations, Yanchang Petroleum International possesses operating oilfields in Saskatchewan and Alberta, Canada, through its wholly owned subsidiary Novus Energy Inc., a Canadian enterprise. Novus engages in the business of acquiring, exploring for, developing and producing crude oil and natural gas. In its downstream operations, Yanchang Petroleum International is principally engaged in wholesale, retail, storage and transportation of oil products through its 70% owned subsidiary, Henan Yanchang Petroleum Sales Co., Limited, and which has been granted valid licenses for distribution and sales of oil products in China. The Group also established oil products trading companies in Zhoushan, Zhejiang and Shenzhen, China, respectively, for expanding its oil products trading business which will become a new profit driver.
For details, please refer to http://www.yanchanginternational.com
Issued by Cornerstones Communications Ltd. on behalf of Yanchang Petroleum International Limited.
The issuer is solely responsible for the content of this announcement.