Turnover increased by 2.7 times to HK$3,214 million
Gross profit surged 8.5 times to HK$1,291 million
Significant Ramp-up at Pakistan Assets
HONG KONG, March 27, 2013 /PRNewswire/ --
Highlights
United Energy Group Limited ("United Energy" or the "Group", SEHK: 467), one of the largest upstream oil and gas enterprises, announced its annual results for the 12 months ended 31 December 2012 (the "review period").
Under the review period, the Group's turnover surged 267% to HK$3,213,793,000. Profit attributable to shareholders increased 48% to HK$786,412,000, mainly attributable to the significant ramp-up in the Pakistan and Liaohe assets under the "reliable operation + rapid expansion" strategy. The Group's gross profit in the review period increased from HK$135,418,000 in 2011 to HK$1,290,833,000. Gross profit margin surged from 15% in 2011 to 40%. Basic earnings per share is HK$0.061. The Board of Directors does not recommend any dividend for the review period.
Mr. Zhang Hong Wei, Chairman and Executive Director of United Energy, said, "2012 was the first full financial year after the Group completed acquiring the BP assets in Pakistan. The Group has recorded an average net production of 24,681. Significant ramp-up has been achieved since the completion of the acquisition of BP asset in Pakistan. We have further acquired working interests at MKK Concession to efficiently realize the potentials of our assets."
Under the review period, the Group' fireflood technology was successfully applied in China Liaohe oilfield with significant progress made in conversion. By converting production wells into fireflood producers, the Group has enhanced the efficiency of the Enhanced Oil Recovery ("EOR") Project in Liaohe. This is the second consecutive year when the Liaohe project recorded a double-digit growth since entering its development and production phase. The average net daily production of the project amounted to 1,334 barrels, representing a year-on-year increase of 75%. Through these efforts, United Energy has achieved a satisfactory performance in 2012. The Group's average net daily production, including the output of Pakistan project, has reached over 26,015 barrel oil equivalent ("boe") currently marking a 20% increase when compared to 2011.
As for the oilfield supporting services, the Group has recorded a turnover of HK$93,504,000 in the review period, representing an increase of 63% year-on-year. The fireflood technology is patented in China. With the increasingly aging oilfields in China, the Board is confident that the business will expand rapidly.
The Group has signed a 5-year project cooperation agreement of US$5 billion worth with the China Development Bank in 2012 signifying the Company's continued ability to enjoy the Bank's preferential financial support in acquisitions. The solid financial support will give the Group competitive edge when it enters into acquisitions, which is in line with the "reliable operation + rapid expansion" strategy. With the abundant financing, the Group will search for quality merger and acquisition or cooperation opportunities. It strives to rapidly expand its assets and operation scales and thus create the best return for the shareholders.
Mr. Zhang concluded, "Affected by the geological instability, oil prices remained strong and is believed to be a positive driver for the Group's revenue. United Energy, being one of the largest listed upstream oil enterprises in Hong Kong, will strive to look for opportunities to expand its business in China and other regions to maximize the returns for shareholders. Entering into 2013, the Group will implement the 'Cooperation to achieve win-win, and to speed up development' principle. We will work closely with Chinese oil companies and other International oil and gas enterprises and maximize the values in our existing assets. We target at enhancing oil and gas production at Pakistan assets, lowering the lifting cost, increasing profit margin and enhancing the exploration scale, increasing the reserves ratio to build a solid base as large-scale oil operator. In the meantime, the Group will continue to increase investment in Liaohe EOR fireflood technology, exploration and increase efforts in enhancing production to achieve stronger profitability and to create new corporate business model."
About United Energy
United Energy Group Limited ("United Energy" or the "Group") is an oil and gas company listed on the main board of Hong Kong Stock Exchange. The Group mainly engages in the upstream oil and natural gas reserved operation, including exploitation, development, production and sales of crude oil and natural gas, as well as provision of patented technologies supporting services to oilfields. United Energy owns Pakistan natural gas and oilfield assets and has right to engage in the exploitation, development and production of the project. The Group owns and operates an oilfield in Liaoning Province, North-East of the PRC. For more information, please visit www.uegl.com.hk.
