YANCHANG PETRO (00346) issues profit warning, expecting a loss of approximately HK$780 million in 2025 compared to a profit in the previous year.

YANCHANG PETRO (00346) announced that the Group expects to incur a loss of approximately HKD 780 million for the year ending December 31, 2025, compared to a profit of approximately HKD 56 million last year. Amid the prolonged Russia-Ukraine war, escalating tensions in the Middle East, and the uncertainty brought by the tariff war initiated by the United States, the global economic recovery in 2025 lacks momentum. In particular, the slower-than-expected growth of the Chinese economy, continued weakness in industrial output and finished oil consumption further suppressed the demand for crude oil. WTI crude oil prices have shown an overall downward trend, falling from an average of around $77 per barrel in 2024 to around $66 per barrel in 2025. The Group's performance has been negatively affected by the decline in international oil prices and weak finished oil consumption in China. The Board of Directors believes that the shift from profit to loss in the past year is mainly due to the impact of the slow global economic recovery, resulting in reduced Group revenue and gross profit; significant impairment losses on oil and gas assets in the Canadian petroleum and natural gas production business; impairment losses on goodwill and other non-current assets in the Chinese finished oil and by-products trading business; and bad debt provisions in the Chinese finished oil and by-products trading business.