JX ENERGY (03395) issues a profit warning, expecting a net loss and comprehensive loss of approximately CAD 3.7 million for the first three quarters, narrowing by about 76% year-on-year.

JX ENERGY (03395) announces that the Company expects to record a net loss and comprehensive loss of approximately CAD 3.7 million for the nine months ended September 30, 2026 (the Period), representing a decrease of approximately 76% compared with a net loss and comprehensive loss of approximately CAD 15.2 million for the nine months ended September 30, 2025 (the Corresponding Period). The expected narrowing of the loss for the Period is primarily attributable to the following factors: (1) the Company's operating costs decreased from approximately CAD 11.7 million in the Corresponding Period to approximately CAD 5.4 million in the Period, a decrease of approximately CAD 6.3 million, or approximately 53.5%, primarily attributable to the amendment of the gas processing and gas compression agreements entered into between the Company and Jixing Energy (Canada) Ltd., pursuant to which no such fees were incurred during the Period; (2) the amount of impairment recovery and write-off decreased by approximately CAD 3.7 million, from approximately CAD 3.8 million in the Corresponding Period to approximately CAD 0.1 million in the Period, primarily reflecting a substantial decrease in the write-off of exploration and evaluation assets; (3) revenue from the sale of goods produced increased from approximately CAD 5.3 million in the Corresponding Period to approximately CAD 8.2 million in the Period, an increase of approximately CAD 2.9 million, or approximately 56%, primarily reflecting an increase in natural gas sales volume and an increase in the average realized selling price of natural gas supported by the Company's fixed-price hedging arrangements. The increase in sales volume also reflects the lower comparative production base in the third quarter of 2025, when natural gas production was suspended for most of the quarter due to weak market prices; and (4) a gain on disposal of assets of CAD 0.5 million was recorded in the Period, compared with nil in the Corresponding Period. The above positive effects were partially offset by: (i) royalty expenses increased from approximately CAD 0.4 million in the Corresponding Period to approximately CAD 1.4 million in the Period, an increase of approximately CAD 1.0 million, reflecting factors such as increased production revenue, changes in applicable cost deductions and royalty reassessment; and (ii) finance costs increased from approximately CAD 2.4 million in the Corresponding Period to approximately CAD 3.3 million in the Period, an increase of approximately CAD 0.9 million, or approximately 38%, primarily reflecting the conversion of exchange gains in the Corresponding Period to exchange losses in the Period, as well as an increase in accretion expenses, partially offset by a decrease in interest expenses and financing costs.