Yanchang Petroleum International Announces 2021 Annual Results

Annual Revenue Reached Approx. HK$360 million

Working Revenue of Oil and By-product Buying and selling Enterprise within the PRC Elevated by 42.5% to just about HK$82 million

Monetary Highlights:

• General income amounted to approx. HK$19.8 billion (2020: HK$27.2 billion)
• Revenue of the 12 months reached approx. HK$358 million (2020: lack of approx. HK$793 million)
• Working revenue of the exploration, exploitation and operation enterprise elevated considerably to HK$23.91 million (2020：lack of approx. HK$68.24 million)
• Novus’ gross sales quantity of oil and gasoline amounted to 482,000 BOE, contributed income of approx. 200 million (2020: approx. 95.83 million)
• Working revenue of the oil and by-product buying and selling enterprise within the PRC elevated by 42.5% yoy to approx. HK$81.69 million (2020: HK$57.34 million)

HONG KONG SAR – Media OutReach – 25 March 2022 – Yanchang Petroleum Worldwide Restricted (“Yanchang Petroleum Worldwide” or the “Firm”, along with its subsidiaries, the “Group”; Inventory Code: 00346) as we speak pronounces its audited annual outcomes for the 12 months ended 31 December 2021 (“12 months beneath assessment”).

Ranging from the second half of 2021, the petroleum market underwent adjustments from oversupply to undersupply, leading to worldwide oil costs rebounding considerably. Because the pandemic subsided, the vaccination charge of main economies in Europe and the USA considerably elevated and lockdown measures have been step by step lifted, resulting in a sturdy demand within the general oil market. Yanchang Petroleum Worldwide seized the chance to place its upstream enterprise prematurely whereas optimizing the operation effectivity of the oil and gasoline enterprise chain. Consequently, it had recorded its greatest efficiency previously seven years, efficiently reaching a revenue turnaround. Through the 12 months beneath assessment, the Group’s income primarily derived from the oil and gasoline manufacturing enterprise in Canada and the oil and by-products buying and selling enterprise within the PRC, with the general income reaching roughly HK$19.8 billion (2020: HK$27.2 billion). The revenue of the 12 months amounted to roughly HK$358 million, as in comparison with the lack of roughly HK$793 million in 2020. The Board doesn’t advocate the fee of any dividends for the 12 months ended 31 December 2021.

Upstream oil and gasoline manufacturing enterprise in Canada

Novus Power Inc. (“Novus”) is engaged in Novus is engaged within the enterprise of exploration, exploitation and manufacturing of oil and pure gasoline in Western Canada. Through the 12 months beneath assessment, Novus achieved gross sales quantity of oil and gasoline of 482,000 barrel of equal (“BOE”) and contributed income of roughly HK$200 million as in comparison with gross sales quantity of 463,000 BOE and income of roughly HK$95.83 million in 2020.

Through the 12 months beneath assessment, the working revenue of the exploration, exploitation and operation enterprise amounted to roughly HK$23.91 million, as in comparison with an working lack of HK$68.24 million previously 12 months. Within the first half of 2021, Novus restarted the operation of its long-clos wells, elevated its manufacturing quantity and made cheap stock adjustment in keeping with oilfield operation in a bid to regulate prices and optimize financial advantages. Through the 12 months beneath assessment, the web drilling by Novus was 33 wells, and Novus had 427.2 horizontal wells and 71.8 vertical wells in manufacturing as of 31 December 2021. With the native authorities step by step lifting the pandemic-related lockdown measures, the workers on the Novus website strived to chop down prices whereas protecting as many wells in regular operation as attainable. The working bills in 2021 have been CAD9.30 million in whole, barely up by CAD270,000 as in contrast with CAD9.03 million in the identical interval final 12 months.

Downstream Oil and By-product Gross sales Enterprise within the PRC

Through the 12 months beneath assessment, attributable to a lower in gross sales quantity from 6.36 million tonnes in 2020 to 4.89 million tonnes in 2021, the income of oil and by-products buying and selling enterprise within the PRC was HK$19,577 million, contributing a section working revenue of roughly HK$81.69 million, which represented a rise of 42.5% year-on-year.

Henan Yanchang Refined Oil Enterprise

Benefited from the excellent efficiency in oil distribution, exterior sourcing and terminal improvement of Henan Yanchang Petroleum Gross sales Co. Restricted (“Henan Yanchang”), the enterprise of Henan Yanchang has achieved constant development. Through the 12 months beneath assessment, Henan Yanchang bought a complete of 4.095 million tonnes of refined oil, achieved working earnings of roughly RMB23.36 billion with whole working revenue of roughly RMB31.141 million.

For oil distribution, Henan Yanchang actively developed regional markets corresponding to Ningxia, Sichuan, Gansu and Qinghai, and developed 7 new prospects in the course of the 12 months beneath assessment. As well as, Henan Yanchang leased oil tanks via the co-operation with Sinopec to steadiness market fluctuations whereas increasing gross sales channels. For exterior sourcing, Henan Yanchang continued to deepen the cooperation with its prospects, actively expanded its enterprise in Ningxia, Hubei and Henan, and bought 19 new prospects and 35 suppliers; Henan Yanchang additionally accomplished the upgrading and transformation of three gasoline stations in Xiangcheng and put them into operation. It recorded the best intraday retail gross sales quantity of over 22.5 tonnes, and signed contracts with two direct provide gasoline stations in Ningxia area.

Yanchang Zhejiang Oil and By-product Enterprise

Yanchang Petroleum (Zhejiang FTZ) Ltd. (“Yanchang Zhejiang”) recorded oil and by-products product gross sales quantity of 1.12 million tonnes in 2021, representing a year-on-year enhance of 236%. The gross sales income was RMB3,760 million, together with gross sales income realized from home uncooked oil commerce off RMB 2,888 million, and income from manufacturing facility completed product gross sales of RMB872 million. The working revenue in 2021 was RMB 19.93 million and receivables restoration charge was 100%.

Because of the emergence of the brand new mutant virus strains and USA working with many different nations to launch the nations’ oil reserves to the market in an try to suppress the rising oil costs, the uncertainties available in the market had been elevated. Zhejiang Yanchang took the strategy of pre-price setting to actively mitigate dangers whereas safeguarding the value and high quality of imported uncooked supplies. As well as, in view of the implementation of the brand new taxation coverage, which raised the procurement value of the merchandise together with diluted asphalt and different merchandise, the demand on the firms’ money circulate was elevated.

Mr. Feng Yinguo, Chairman of Yanchang Petroleum Worldwide, mentioned, “Going ahead in 2022, the worldwide vitality disaster might proceed to escalate within the first half of the 12 months. The geopolitical conflicts have profoundly shaken the worldwide vitality panorama, which can lead to excessive volatility in worldwide oil costs. The surging oil costs might immediate most nations to speed up the tempo of vitality transition. The Group will proceed to strengthen its investments in know-how, capital and administration, whereas adjusting its organizational construction and enterprise mannequin to deal with the Group’s improvement technique in a versatile method, in order to gear up for the challenges within the new spherical of trade cycle. For our upstream enterprise, we are going to proceed to spice up the manufacturing and operation of Novus, and to develop the downstream oil and by-product gross sales enterprise within the PRC, and actively discover the worldwide petrochemical buying and selling enterprise. As an built-in buying and selling and sub-contracted refining firm, Yanchang Zhejiang will take the initiative to regulate this operation plan to deal with exterior adjustments.”

About Yanchang Petroleum Worldwide (Inventory Code: 00346)

Yanchang Petroleum Worldwide is principally engaged within the following actions (i) exploration, exploitation, and operation of oil and gasoline; and (ii) gas oil buying and selling and distribution. In its upstream operations, Yanchang Petroleum Worldwide possesses working oilfields in Saskatchewan and Alberta, Canada, via its wholly owned subsidiary Novus Power Inc., a Canadian enterprise. Novus engages within the enterprise of buying, exploring for, growing and producing crude oil and pure gasoline. In its downstream operations, Yanchang Petroleum Worldwide is principally engaged in wholesale, retail, storage and transportation of oil merchandise via its 70% owned subsidiary, Henan Yanchang Petroleum Gross sales Co., Restricted, and which has been granted legitimate licenses for distribution and gross sales of oil merchandise in China. The Group additionally established oil merchandise buying and selling corporations in Zhoushan, Zhejiang and Shenzhen, China, respectively, for increasing its oil merchandise buying and selling enterprise which grow to be a brand new revenue driver.

For particulars, please consult with http://www.yanchanginternational.com

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