CITIC Resources Posts Annual Group Results for 2008
CITIC Resources has announced the annual results of the Company and its subsidiaries for the 12 months ended December 31, 2008.
During the Period, the Group recorded a total revenue of HK$18,761 million (2007: HK$10,008 million), representing a growth of 87.5% over the corresponding period last year. Gross profit increased by 124.6% for the Period under review to HK$3,214 million (2007: HK$1,431 million). After provision for impairment of items of property, plant and equipment has been included, profit attributable to shareholders of the Company amounted to HK$204 million, representing a decrease of 27.8% over the corresponding period last year; Basic earnings per share was HK3.61 cents (2007: HK5.63 cents). During the period, every business segment of the Group was well operated, including aluminium smelting, coal, import and export of commodities, manganese, crude oil. Profit before provision for impairment of items of property, plant and equipment and tax increased by 115.9% to HK$1,720.0 million.
The oil business would have been the Group's largest net profit contributor in 2008 but for the asset impairment loss in respect of certain oil investments of the Group. Mr. Sun Xinguo, Chief Executive Officer of the Group said, "Generally speaking, we are satisfied with the performance of every business segment of the Group during the Period. In the future, the Group's priority and emphasis continue to be improving the oil production in Kazakhstan and Indonesia and to commence production at the Yuedong oilfield as soon as possible.The energy and commodities sectors in which the Group operates will continue to be placed under pressure and hardship due to the worsened global economic situations. However, we are confident that the Board and the management are determined to meet the challenges, tackle the difficulties and seize upon suitable business opportunities to deliver to shareholders positive economic benefits in consistent with the Group's business development goals."
Business Review Crude Oil The Group has been able to account for a full year's contribution from the Karazhanbas oilfield for the first time in 2008. The Group's focus is on improving effective production from its oil assets, particularly the Karazhanbas oilfield which wields influence on the Group's benefits. The deployment of cyclic steam stimulation and steam flooding in place of cold heavy oil production with sand continues with the aim of extending well life and stabilising production volume at a higher level. During the year, proved reserves at the Seram Island Non-Bula Block, Indonesia increased by 4.6 million barrels following the Group's successful discovery of the area of Nief Utara A and the re-entry in the area of East Nief. The Group continues to work with China National Petroleum Corporation in respect of the Yuedong oilfield at the Hainan-Yuedong Block to make steady progress and endeavors to move to the production stage as soon as feasible.
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