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华商能源(00206) - 2020 - 中期财报
CM-ENERGYCM-ENERGY(HK:00206)2020-09-21 04:05

Financial Performance - The Group's revenue for the six months ended 30 June 2020 reached approximately US$31.2 million, representing a decrease of approximately 3.8% from US$32.4 million for the same period in 2019[13]. - Gross profit amounted to approximately US$10.1 million for the six months ended 30 June 2020, representing an increase of approximately 2.7% from US$9.9 million for the same period in 2019[13]. - Net profit attributed to equity shareholders of the Company amounted to approximately US$2.9 million for the six months ended 30 June 2020, representing a decrease of 62.0% from US$7.5 million for the same period in 2019[13]. - Earnings per share for the six months ended 30 June 2020 was US$0.10 cent, representing a decrease of 64.3% compared with US$0.28 cent for the same period in 2019[13]. - The Board has resolved not to declare an interim dividend for the six months ended 30 June 2020[13]. - Total comprehensive loss for the period amounted to approximately US$521,000, compared to a total comprehensive income of US$7.3 million for the same period in 2019[17]. - The Group's profit before taxation for the six months ended 30 June 2020 was US$3.2 million, down from US$7.7 million for the same period in 2019[15]. - The consolidated profit before taxation for the six months ended June 30, 2020, was $3,185,000, down from $7,687,000 in 2019, a decrease of approximately 58.7%[51]. - The profit from operations increased significantly by 250.6% to US$3.7 million compared to US$1.0 million in the previous year[118]. Revenue Breakdown - Revenue from oilfield expendables and supplies increased to $20,966 thousand in 2020 from $15,054 thousand in 2019, representing a growth of approximately 39.5%[33]. - Sales of capital equipment decreased to $6,826 thousand in 2020 from $13,510 thousand in 2019, reflecting a decline of approximately 49.6%[33]. - Reportable segment revenue for the period ended June 30, 2020, was $31,171,000, a decrease from $32,386,000 in the same period of 2019, representing a decline of approximately 3.8%[42]. - Revenue from external customers for the six months ended June 30, 2020, was US$31,171,000, a decrease of 3.7% from US$32,386,000 for the same period in 2019[60]. - Revenue from capital equipment and packages decreased by 49.5% from US$13.5 million in the first half of 2019 to US$6.8 million in the first half of 2020 due to the impact of COVID-19[124]. - Engineering services revenue decreased from US$3.8 million in the first half of 2019 to US$3.4 million in the first half of 2020, mainly due to a drop in demand[128]. Assets and Liabilities - As of June 30, 2020, total assets amounted to $285,804,000, an increase from $258,591,000 as of December 31, 2019, representing a growth of approximately 10.5%[19]. - Current liabilities increased to $253,085,000 from $228,789,000, reflecting a rise of about 10.6%[19]. - Net current assets improved to $32,719,000, up from $29,802,000, indicating an increase of approximately 6.4%[19]. - Non-current liabilities decreased to $5,826,000 from $6,975,000, showing a reduction of about 16.5%[21]. - Total equity attributable to equity shareholders decreased slightly to $119,803,000 from $121,056,000, a decline of approximately 1.0%[21]. - Cash and cash equivalents decreased to $30,178,000 from $35,021,000, a decline of about 13.8%[19]. - The company's total liabilities rose to US$258,911,000 as of June 30, 2020, compared to US$235,764,000 at the end of 2019, indicating an increase of about 9.8%[55]. Cash Flow - For the six months ended June 30, 2020, the net cash used in operating activities was $(4,016) thousand, compared to $(13,921) thousand in 2019, indicating a significant improvement[26]. - The net cash generated from investing activities was $4,521 thousand in 2020, a recovery from $(36,552) thousand in 2019[26]. - The company reported a net cash used in financing activities of $(5,355) thousand for the six months ended June 30, 2020, compared to a net cash generated of $81,975 thousand in 2019[26]. Market and Industry Trends - The average oil demand for 2020 is projected to be 8,700 to 8,800 thousand barrels per day, a decrease of 10.9% from 2019, with expectations of recovery to 9,300 to 9,700 thousand barrels per day in 2021[96]. - Major oil companies have cut capital expenditures by approximately $62.5 billion, about 27% lower than budgeted, due to the COVID-19 pandemic[96]. - The overall capital expenditure of the drilling industry is expected to decrease by 25% in 2020 compared to 2019[96]. - The offshore drilling market is cyclical, with a typical cycle of approximately 5 to 6 years, and was showing signs of recovery before the pandemic[96]. - The average wet lease daily rate for global offshore jack-up rigs decreased by 10% to US$86,000 per day from the end of 2019, with standard rigs at US$56,000 and high-spec rigs at US$106,000 per day[98]. Strategic Initiatives - The company is focusing on clean energy and technology investments to enhance overall performance and maximize shareholder value[93]. - The company aims to strengthen its marketisation operation in the offshore asset management business amid market challenges[167]. - The company plans to improve capital operation efficiency through financial leasing and other strategies[167]. - Future investments will target high-tech technology and intelligent manufacturing that align with the company's existing high-end equipment manufacturing[178]. - The company will explore investment and acquisition opportunities in clean energy sectors, including offshore wind power and LNG, as well as in artificial intelligence and big data[180]. Shareholder and Management Information - The company did not declare an interim dividend for the six months ended June 30, 2020, consistent with the previous year[9]. - The management team has undergone changes, with new appointments effective from February 19, 2020, including a new chairman and CEO[183]. - The trustee purchased 23,400,000 shares under Share Award Plan 2, representing 0.8% of the issued share capital, for a total consideration of approximately HK$5,534,187 during the six months ended 30 June 2020[196].