Yanchang Petroleum International Announces 2024 Annual Results

, /PRNewswire/ -- Yanchang Petroleum International Limited ("Yanchang Petroleum International" or the "Company", together with its subsidiaries, the "Group"; Stock code: 346.HK) today announced its audited annual results for the year ended 31 December 2024 ("year under review").

In 2024, the market maintained a "tight balance and weak" trend due to multiple factors such as the volatility in international oil prices, increasing geopolitical risk events and financial market turbulence. Facing external challenges, the Group adhered to its business philosophy, deepened the cost reduction and efficiency improvement of its oil and gas business, and strengthened its ability to hedge risks in the industrial chain. During the year under review, the Group actively engaged in technological innovation to improve recovery rates and operational efficiency in the upstream business, while the downstream business consolidated market resilience by promoting market expansion and deepening business cooperation. The Group's revenue increased by 5% YoY to HK$29.18 billion in 2024, resulting in a profit of HK$55.6 million.

Upstream Oil and Gas Production Business in Canada

In 2024, Novus Energy Inc. ("Novus") was committed to implementing the various work plans for 2024 and fully organised production and operations by focusing on key objectives of the year. During the year under review, Novus sold a total of 843,000 BoE, a decrease of 22.95% from the previous year. Sales revenue was CAD60,800,000, a decrease of 29.61% YoY. Natural gas sales prices continued to decline, representing a significant 41.02% YoY decrease. Sales prices of oil and gas mixtures decreased by 8.65%. Benefiting from the impairment recovery of oil and gas assets of CAD25,260,000, Novus recorded a net profit of CAD11,600,000.

During the year under review, Novus focused on the production targets for the year and made a concerted efforts to coordinate the production of new wells as well as control and reduction of production decline of old wells. In addition, Novus actively implemented effective optimisation measures for production and effectively controlled the decline in production for old wells. Novus produced a total of 837,000 BoE last year, successfully reaching the annual production target for the year.

In terms of reserves, Novus has taken a series of effective measures to maintain the sustainability of the reserves. Firstly, Novus has taken a number of initiatives to preserve the mining rights of lands and successfully preserved 68 square kilometers of lands. Secondly, through extensive drilling activities in recent years, the 2P reserves reached 18,520,000 BoE at the end of 2024, an increase of 2.3% YoY, which continuously consolidated the Group's reserves. In addition, Novus successfully drilled an exploration well and put it into operation under the Madison Group, with cumulative production of 5,000 BoE in six months, laying the foundation for further exploration and development as well as reserves succession.

Downstream Oil and By-product Trading Business in China

In 2024, Henan Yanchang Petroleum Sales Co Ltd ("Henan Yanchang") adhered to safe and compliant operations and firmly promoted market-oriented reforms. In the year under review, Henan Yanchang recorded cumulative oil sales volume of 3,838,500 tonnes, with an operating revenue of RMB27.034 billion and net profit of RMB4.56 million.

During the year under review, Henan Yanchang actively expanded its business development. In the retail terminal business, Henan Yanchang expanded the surrounding markets of gas stations and secured 36 new major customers. In terms of railway channel sales, benefited from its proactive expansion of sales channels and established long-term and stable cooperation with Sinopec, CNPC, as well as local state reserve and private enterprises, Henan Yanchang successfully cultivated partnerships with 10 new customers and realized a sales volume of 64,900 tonnes, with sales amounted to RMB464 million. In terms of external sourcing and sales, Henan Yanchang established stable cooperation with CNOOC Huadong Company, CNPC Hubei Company, Shell Chongqing Company and Shell Wuhan Company. Leveraging its core business, Henan Yanchang has expanded its sales in the Hubei, Hunan and Chongqing regions. During the year, the centralised procurement business reached 42,740 tonnes, establishing a strong market presence along the Yangtze River.

Mr. Feng Yinguo, Chairman of Yanchang Petroleum International, said, "In 2025, the international oil and gas market may face the two headwinds of weak demand recovery and high volatility in supply. The threat of a tariff war may slow down global economic growth, coupled with persistent geopolitical risks and energy policy uncertainties may further aggravate downward pressure on oil prices. The Group will continue to enhance the efficiency of its oil and gas business across the entire industry chain and strengthen its cost control and market responsiveness through digital tools, with a strategic focus on consolidating fundamentals and fostering new growth drivers. The Group is committed to excellence in its upstream and downstream businesses, creating sustainable value for our shareholders."

- End -

About Yanchang Petroleum International Limited (Stock code: 346.HK)

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.

For details, please refer to http://www.yanchanginternational.com