联合能源集团(00467) - 2023 - 年度财报

Revenue and Profit Performance - Revenue for 2023 increased by 26.4% to HKD 13,591,075 thousand compared to HKD 10,753,743 thousand in 2022[6] - Gross profit decreased by 19.5% to HKD 4,439,240 thousand in 2023 from HKD 5,512,983 thousand in 2022[6] - The company's revenue for the year was approximately HKD 13,591,075,000, an increase of 26.4% compared to the previous year's HKD 10,753,743,000, driven by new trading business but offset by lower realized sales prices in exploration and production[30] - The company's gross profit for the year was HKD 4,439,240,000 (gross margin of 32.7%), a decrease of 19.5% compared to the previous year's HKD 5,512,983,000 (gross margin of 51.3%), primarily due to lower average international oil prices and increased depreciation and amortization[37] - Revenue for 2023 increased to 13,591,075 thousand HKD, up from 10,753,743 thousand HKD in 2022, representing a growth of approximately 26.4%[151] - Gross profit for 2023 was 4,439,240 thousand HKD, a decrease from 5,512,983 thousand HKD in 2022, reflecting a decline of approximately 19.5%[151] Production and Reserves - Average daily production in 2023 was 100,407 barrels of oil equivalent per day (boe/d), with a total of 11 commercial discoveries made during the year[11] - Proved and probable (2P) reserves reached approximately 611.6 million barrels of oil equivalent (MMboe) with a reserve-to-production ratio of 16.7[11] - The company's net equity proved reserves at the end of 2023 were 48.4 million barrels of oil equivalent (MMboe), a decrease of 16.0% compared to 57.6 MMboe in 2022[7] - The company's net equity proved and probable reserves at the end of 2023 were 94.0 MMboe, a decrease of 5.5% compared to 99.5 MMboe in 2022[7] - The company achieved 11 commercial discoveries in 2023, with 7 in Pakistan, 3 in Egypt, and 1 in Iraq[18] - The company's average daily production reached 167,826 barrels of oil equivalent (BOE) in 2023, a 1.17% increase from the previous year[20] - In Pakistan, the average daily production was 62,762 BOE, a 9.6% decrease compared to the previous year[21] - In Iraq, the B9 block's average daily production reached 63,320 BOE, a 9.5% increase from the previous year[22] - In Egypt, the average daily production was 16,951 BOE, a 7.8% decrease compared to the previous year[23] - The company's cumulative equity crude oil and condensate sales volume was 23.2 million barrels in 2023, an 8.4% increase year-over-year[25] - The average realized crude oil price was $78.60 per barrel in 2023, an 18.3$30.88 per BOE in 2023, a 3.5% increase from the previous year[26] - The company's petrochemical product sales volume was 741,605 tons in 2023, with an average realized price of $548.55 per ton[27] - The average daily equity production for the year was approximately 100,407 barrels of oil equivalent (BOE), a slight increase of 0.16$1,707,385,000 in 2023, compared to a profit of HK$2,601,162,000 in 2022, primarily due to a one-time impairment of reserves of approximately HK$4,185,457,000 (post-tax) and a one-time exploration dry hole write-off of approximately HK$201,156,000 (post-tax)[13] - The company reported a net loss of 1,707,401 thousand HKD in 2023, compared to a net profit of 2,601,146 thousand HKD in 2022[151] - Total comprehensive loss for 2023 was 1,704,458 thousand HKD, compared to a total comprehensive income of 2,611,238 thousand HKD in 2022[154] - The company reported a pre-tax loss of 2,019,941 thousand HKD in 2023, compared to a pre-tax profit of 3,021,096 thousand HKD in 2022[159] - Impairment losses on intangible assets surged to 2,263,951 thousand HKD in 2023 from 609,132 thousand HKD in 2022[159] - Impairment losses on property, plant, and equipment rose to 2,833,566 thousand HKD in 2023 from 219,421 thousand HKD in 2022[159] - The company recognized impairment provisions and write-offs for property, plant, and equipment, as well as intangible assets, totaling approximately HKD 3,420,805,000 and HKD 2,263,951,000 respectively[140] Capital Expenditures and Investments - The company invested approximately HK$6,868,844,000 in capital expenditures for oil exploration, development, and production activities in 2023, completing the drilling of 48 wells, including 20 in Pakistan and 28 in the Middle East and North Africa[13] - The company's target for 2024 is an average daily production range of 176,300 to 197,600 barrels, with an average equity daily production range of 101,600 to 113,500 barrels. The expected capital expenditure is between $880 million and$930 million[12] - Exploration costs for the year ended December 31, 2023, were HKD 368,337,000, with development costs totaling HKD 6,190,149,000[62] - Cash outflow for investment activities increased by 14.7% to approximately HKD 6,543,314,000 in 2023, with capital expenditures rising by 23.7% to HKD 6,669,825,000[44] - Net cash used in investing activities amounted to HK$6,543,314 thousand in 2023, compared to HK$5,706,750 thousand in 2022[160] Clean Energy and Sustainability - The company aims to expand its clean energy portfolio and invest in gigawatt-scale clean energy projects in Europe, the Middle East, North Africa, and Central Asia as part of its long-term decarbonization and sustainability strategy[12] - The company plans to continue exploring new opportunities for clean energy projects in the Middle East, North Africa, and other regions, while also developing its carbon trading business and advancing its roadmap for achieving carbon neutrality[12] Operational Highlights by Region - In Iraq, the B9 block's daily production exceeded 70,000 barrels, and the construction of central processing facilities is progressing rapidly[11] - In Pakistan, the company maintained stable production and operations, ensuring local energy supply[11] - In Egypt, the company expanded exploration areas and improved operational efficiency, maintaining stable overall production[11] - In Pakistan, the company's exploration area increased by 10.7% from 22,433 square kilometers in 2022 to 24,830 square kilometers in 2023, with plans to achieve an average working interest production of 35,500 to 40,900 barrels of oil equivalent per day in 2024[47] - The Middle East and North Africa assets have proven and probable reserves of 517.6 million barrels of oil equivalent, with 96.4% located in Iraq, and the company plans to achieve average working interest production of 55,100 to 59,400 barrels of oil equivalent per day in Iraq and 11,000 to 13,200 barrels of oil equivalent per day in Egypt in 2024[48] Financial Position and Assets - The company's total assets decreased by 5.8% to HKD 25,829,150 thousand in 2023 from HKD 27,419,844 thousand in 2022[6] - Total assets decreased to 14,170,196 thousand HKD in 2023 from 17,414,747 thousand HKD in 2022, a reduction of approximately 18.6%[155] - Current assets increased to 11,658,954 thousand HKD in 2023 from 10,005,097 thousand HKD in 2022, showing a growth of approximately 16.5%[155] - Current liabilities rose to 8,987,411 thousand HKD in 2023 from 7,974,309 thousand HKD in 2022, an increase of approximately 12.7%[155] - The company's net current assets improved to 2,671,543 thousand HKD in 2023 from 2,030,788 thousand HKD in 2022, reflecting a growth of approximately 31.6%[155] - The company's property, plant, and equipment decreased to 11,224,269 thousand HKD in 2023 from 11,739,252 thousand HKD in 2022, a reduction of approximately 4.4%[155] - Intangible assets significantly decreased to 1,619,227 thousand HKD in 2023 from 4,323,573 thousand HKD in 2022, a decline of approximately 62.5%[155] - Non-current liabilities increased to 4,005,590 thousand HKD in 2023 from 3,637,715 thousand HKD in 2022, driven by a significant rise in borrowings to 2,488,001 thousand HKD from 1,586,344 thousand HKD[156] - The company's net asset value decreased to 12,836,149 thousand HKD in 2023 from 15,807,820 thousand HKD in 2022, reflecting a decline in equity[156] - Total equity attributable to the company's owners dropped to 12,830,726 thousand HKD in 2023 from 15,802,040 thousand HKD in 2022, primarily due to a decrease in retained earnings[157] - The company's bank and cash balances as of December 31, 2023, were approximately HKD 3,327,279,000, compared to HKD 3,255,124,000 at the end of 2022[50] - The company's debt ratio was 16.5% as of December 31, 2023, compared to 15.3% at the end of 2022, with a current ratio of 1.30 times, up from 1.25 times at the end of 2022[51] - Total borrowings of the group amounted to approximately HKD 2,794,035,000 as of December 31, 2023, with a weighted average interest rate of 8.33%[52] - The group's property, plant, and equipment, along with other assets, were valued at approximately HKD 4,039,764,000 as of December 31, 2023, serving as collateral for bank financing[52] - The company's distributable reserves as of December 31, 2023, amounted to approximately HKD 7,436,432,000 (December 31, 2022: HKD 8,488,029,000)[127] Cash Flow and Financing - Operating cash inflow for the reporting period was approximately HKD 7,326,562,000, a decrease of 6.4% compared to the previous year's HKD 7,824,906,000, primarily due to lower average international oil prices in 2023[43] - Cash outflow for financing activities was approximately HKD 638,132,000 in 2023, including special dividends of HKD 1,051,597,000, bank loan repayments of HKD 3,074,136,000, and share buybacks of HKD 216,491,000[45] - Net cash used in financing activities was HK$638,132 thousand in 2023, a significant decrease from HK$2,069,864 thousand in 2022[160] - Cash and cash equivalents increased by HK$145,116 thousand in 2023, up from HK$48,292 thousand in 2022[160] - The company raised HK$2,409,251 thousand in borrowings, net of direct transaction costs, in 2023, compared to HK$768,300 thousand in 2022[160] - Repayment of borrowings totaled HK$3,074,136 thousand in 2023, up from HK$1,980,101 thousand in 2022[160] - A customer deposit of HK$1,560,000 thousand was received in 2023, compared to HK$390,000 thousand in 2022[160] - The company repurchased shares worth HK$216,491 thousand in 2023, with no repurchases in 2022[160] - Dividends paid to the company's owners amounted to HK$1,051,597 thousand in both 2023 and 2022[160] - Cash and cash equivalents at the end of 2023 stood at HK$3,327,279 thousand, up from HK$3,169,455 thousand at the end of 2022[160] Corporate Governance and Board Activities - The company's Board of Directors consists of 5 members, including 2 executive directors and 3 independent non-executive directors, with Mr. Zhang Hongwei serving as the Chairman[67] - The Board of Directors held 8 meetings in 2023, with all directors having a 100% attendance rate[71] - All directors attended the 2023 Annual General Meeting, with a 100% attendance rate[72] - The company provides ongoing professional development for directors, including briefings on corporate governance, director responsibilities, and regulatory updates[73] - Directors are required to participate in suitable continuous professional development to enhance their knowledge and skills[73] - The company has adopted the standard code of conduct for directors' securities transactions as per the Listing Rules Appendix C3[65] - The company maintains appropriate insurance coverage for directors and senior officers to protect against legal liabilities arising from the group's business[66] - The Board of Directors is responsible for approving the group's development and business strategies, major investments, financial controls, and significant transactions[70] - The company ensures that at least one-third of the Board consists of independent non-executive directors, with at least one possessing relevant professional qualifications and financial expertise[69] - The company has established a clear division of responsibilities between the Chairman and the CEO, although the CEO position is currently vacant[64] - The audit committee held two meetings in 2023, with 100% attendance from all members (Zhou Shaowei, Shen Feng, and Wang Ying)[79] - The company paid HKD 7,133,000 for audit services and HKD 1,107,000 for non-audit services to its external auditor, RSM[84] - The risk management and internal control department conducted an annual review, implementing stricter procedures, and the board confirmed the system's effectiveness[85] - The remuneration committee held three meetings in 2023 to review and approve the compensation packages for directors and senior management[80] - The nomination committee held two meetings in 2023, focusing on board diversity and re-election of directors[82] - The company secretary, Mr. Kong Likai, completed over 15 hours of professional training in 2023 to update his skills and knowledge[86] - The board ensures compliance with Hong Kong Financial Reporting Standards (HKFRS), which align with International Financial Reporting Standards (IFRS)[75] - The audit committee reviewed external auditor plans, risk management, internal controls, and financial statements, providing recommendations to the board[79] - The remuneration committee considered factors such as comparable company salary levels and the time and responsibilities of directors and senior management when determining compensation[80] - The nomination committee assessed the board's diversity in skills, experience, and perspectives, concluding it aligns with the company's diversity policy[82] Risks and Challenges - The company's financial performance is significantly impacted by fluctuations in international oil and gas prices, which are influenced by supply and demand changes, global economic conditions, and political instability[91] - The company faces risks related to tax and fiscal systems in Pakistan, Egypt, and Iraq, where any changes could increase tax burdens and adversely affect financial performance[92] - Exploration and development activities carry inherent risks of not discovering commercial oil and gas reserves, which could lead to write-offs or impairment charges[93] - Operational risks in exploration, development, and production include health, safety, security, and environmental concerns, which could result in economic losses, operational disruptions, and litigation[94] - Mergers and acquisitions may not succeed due to factors such as external financing availability and discrepancies between key assumptions and actual parameters[95] - The company's operations could be adversely affected by natural disasters, pandemics, or other public health crises, potentially disrupting supply chains and reducing demand for products[97] Shareholder and Equity Information - The company granted 20,600,000 shares to 55 eligible employees under the PSU plan in 2023, with 1,341,036 shares vested due to retirement and 105,608 shares forfeited due to employee departure[109] - The total number of shares granted under the PSU plan since its adoption is 60,147,163, with 82,594,841 shares available for future grants, representing approximately 3.2% of the plan's authorized limit[109] - Zhang Hongwei holds 17,661,944,230 shares (67.82%) of the company's equity through controlled