- Implements Business Strategy of 'Core Existing Business Consolidation, Dual Driven Growth of Investment and Trading'
- Stable Operating Results with Positive Outlook
- Oil and Gas Trading Business Emerges as Key Growth Engine
HONG KONG, Mar 17, 2025 - (ACN Newswire) - CITIC Resources Holdings Limited (hereinafter referred to as the CITIC Resources or the Company, or the Group when its subsidiaries are included; Stock Code: 1205.HK) has announced its annual results for the year ended 31 December 2024 (hereinafter referred to as the 'Year').
Stable operating results with positive outlook. Breakthrough in revenue and profit growth.
In 2024, there remained uncertainties and complexity in global economic growth. Despite such challenges, the Group has taken proactive measures to manage risks and promote its steady development, and thereby accomplished remarkable results as shown by the success in achieving increases in, meeting the targets of, and making breakthrough for, both revenue and profits. During the Year, the Group recorded revenue of approximately HK$9.5 billion (2023: approximately HK$3.8 billion), representing a substantial year-on-year increase of approximately 148.3%, with adjusted EBITDA at approximately HK$2.1 billion (2023: approximately HK$2.1 billion) and profit attributable to ordinary shareholders of the Company of approximately HK$572.6 million (2023: HK$551.8 million), representing a year-on-year increase of approximately 3.8%.
As at 31 December 2024, the Group's gearing ratio and interest-bearing debt ratio decreased to approximately 35.2% and 15.5%, respectively, and the return on net assets was approximately 7.2%, indicative of a strong and healthy overall asset status. The Group proposes to distribute a final dividend of HK2.6 cents per ordinary share for 2024 (2023: HK2.5 cents).
Oil and gas business operated smoothly. Trading business merged as a new growth engine.
During the Year, the Group's oil and gas business achieved an operating output of approximately 17.6 million barrels and an equity production of approximately 9.5 million barrels, representing a year-on-year increase of approximately 3.2% and 3.0% respectively. The oil and gas business achieved an annual revenue of approximately HK$1.4 billion (2023: approximately HK$1.5 billion), and contributed approximately HK$338.0 million to the net profit attributable to the ordinary shareholders of the Company (2023: approximately HK$685.1 million). With revenue reaching approximately HK$5.9 billion (2023: -), oil and gas trading business has emerged as a key driver of the Group's new development.
Focusing on technological innovation, the Group has significantly enhanced the efficiency of exploration and development management across its existing oilfields and further explored their potential. Moreover, with meticulous reservoir management, the Group has optimized reserve development, thereby achieving notable increases in both reserves and production output. Meanwhile, the trade and marketing department, applying strategies suitable for the respective local markets, coordinated with various oil field projects to raise the sales price of proprietary oil, expand the export channels of proprietary oil of Yuedong oilfields and prompt existing customers to increase crude oil prices. In anticipation of the adverse impact of the completion of the North American high-sulfur oil pipeline, the trade and marketing department managed to secure the future income through concluding a 3-year crude oil sales bidding of Seram oilfields. The Group will continue to actively explore new crude oil sales channels and strategies of KBM oilfields, in order to enhance the market value of proprietary oil in a diversified manner.
Non-oil-and-gas business achieved a turnaround for profits. Promoted quality and efficiency enhancement of joint venture projects.
During the Year, the Group's non-oil-and-gas business achieved an annual operating income of approximately HK$2.2 billion (2023: HK$2.4 billion) and contributed approximately HK$198.2 million to the net profit attributable to the ordinary shareholders of the Company (2023: net loss of approximately HK$261.2 million) and achieving a turnaround. This improvement was driven by several key initiatives, including the successful completion of the equity transfer of AWC to Alcoa Corporation, which yielded a net profit attributable to the Company's ordinary shareholders of approximately HK$114.4 million. The Group also made steady progress in facilitating the capacity recovery of Portland Aluminium Smelter. Through strategic measures such as entering into a new hedging agreement with independent electricity suppliers, the Group capitalized on the favorable market conditions resulting from the rebound in aluminium prices. These efforts not only enhanced operational efficiency but also further reduced costs, positioning the business for sustained growth. In addition, the Group fully exercised its shareholder rights, and actively coordinated resources to assist CMJV's coal business in resolving capacity bottleneck issues.
Mr. Hao Weibao, Executive Director, Chairman and Chief Executive Officer of CITIC Resources, said, 'In 2025, the external environment remains highly uncertain, presenting both challenges and opportunities. The Group will continue with the business strategy of 'consolidating core existing business and expanding the dual drive in investment and trading' to increase reserves and output, boost the scale of production and sales, continue to introduce new processes and technologies, thereby empowering the development of the Group through technological innovation. In addition, the Group will steadily broaden the oil and gas trading business, be prepared to obtain first-hand resources from crude oil producers in the future and be ready to engage in the 'take-position' physical cargo oil trading business. The Group will also focus on developing 'small-yet-exemplary' resources projects, and make efforts on operation upgrades in different aspects, such as pushing forward with green electricity transformation, expanding further into the industrial chain, and exploring cutting-edge raw aluminum manufacturing. Our aim is to continue to develop the Group, be recognized as a professionalized listed company in the resource and energy sector, and to create long-term value and satisfactory returns for shareholders and stakeholders.'
For details of CITIC Resources' 2024 annual results, please refer to the Group's annual results announcement on the Hong Kong Stock Exchange and the Group's website.
About CITIC Resources Holdings Limited (Stock Code: 1205.HK)
CITIC Resources Holdings Limited has been listed on the Hong Kong Stock Exchange since 1997. Principal activities of CITIC Resources include the exploration, development and production of oil and coal, investments in bauxite mining, alumina refinery, aluminium smelting and oil and gas trading. CITIC Limited is the largest shareholder with about 59.5% interest in CITIC Resources.
Source: CITIC Resources Holdings Limited
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