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  • Written by EQS Asia Business News

(EQS-News / 23/09/2015 / 10:33 UTC+8)

[For Immediate Release]

Annual Performance of Brightoil Improved against a DowntrendUpstream and Downstream Businesses Achieved Synergy with Profit Witnessing Significant Increase of 131.4%

(22 September 2015 - Hong Kong) Brightoil Petroleum (Holdings) Limited ("Brightoil Petroleum" or the "Group"; stock code: 933.HK) today announced its annual results for the twelve months ended 30 June 2015 ("FY2015" or "the period under review").

During the year ended 30 June 2015 ("FY2015" or "the period under review"), Brightoil Petroleum recorded an EBITDA of HK$3,484.1 million, representing a very substantial increase of 216.6% from HK$1,100.4 million in the previous year. Upstream Oil and Gas business recorded an EBITDA of HK$2,244.3 million, representing a very substantial increase of 560.5% from HK$339.8 million in the previous year. Marine Transportation business recorded an EBITDA of HK$518.4 million while ITB business recorded an EBITDA of HK$790.9 million. Profit attributable to the owners of the Company during the period under review amounted to HK$1,386.7 million which is an increase of approximately 131.4% as compared with the profit in the previous year. The Group recorded basic and diluted earnings per share of HK15.6 cents and HK14.7 cents respectively

The Group achieved stable operations in its upstream businesses and substantial increase in its reserves during FY2015. The Group completed the acquisition of all oil producing assets of the China operating company of Anadarko Petroleum Corporation ("Anadarko"), a major U.S. upstream explorer, in Bohai Bay. After that, a series of measures were completed to optimize the operations of the assets. The Group and its partners are currently finalizing a new ODAP for the Caofeidian oil assets. Additionally, the Tuzi Luoke Gas Field ("Tuzi Gas Field") and the neighbouring Dina 1 Gas Field maintained stable production.

-Cont'd-

Dr. SIT Kwong Lam, Chairman of Brightoil Petroleum, stated, "During FY2015, affected by a number of factors including the moderate expansion in U.S. economy, the slowdown in China's economic growth and the tightening of monetary policies in the U.S., sharp changes occurred in the energy market with oil price witnessing a drastic fall, which has posed great challenges for operators in the oil and gas related industry. Under such market sentiments, the Group took opportunities of the low oil price environment, actively controlled operating expenses of upstream businesses; meanwhile, the "twin-engine" business model and the synergy of online and offline business supply chain guaranteed steady business development. At current status of low oil price market, the Group has significant growth in profits."

Upstream Businesses

As of FY2015, the daily productions of the Tuzi and Dina 1 Gas Fields have been stabilized at 2.6 million cubic meters. Meanwhile, the daily production of the Contract Areas 04/36 and 05/36 in Caofeidian gradually increased to 40,000 barrels in June 2015 since the resumption of production on 20 August 2014.The Group has partnered with CNPC to jointly develop the Dina 1 Gas Field. The Group is exploring ways of optimizing its operations based on industry's best practices in order to maximize production without comprising safety. Nine wells of the Tuzi Gas Field have been put into operation while the Group will complete the drilling of the remaining ten wells by the end of 2016, and at that time, the daily production is expected to increase to 3 million cubic meters. The drilling work of the Tuzi 4 Deep Well is progressing positively and rich gas reserves were discovered. The Group has also successfully completed the acquisition of the Caofeidian oilfields from Anadarko Petroleum Corporation, and together with its partners, is currently finalizing a new ODAP for the Caofeidian oil assets. The plan is to install two additional platforms and a new set of wells to be drilled. However, implementation of the above measures will further enhance and implement the Group's long-term growth momentums in terms of upstream reserve, production volume and revenues.

International Trading and Bunkering

In FY2015, despite sharp fall in crude oil prices and the increase in market risk, the international trading and bunkering of Brightoil Petroleum still maintained a steady growth with the overall sales volume in FY2015 increasing by 14% as compared with last year. Crude trading team continued to work with big Chinese oil enterprises to develop long-term supply contracts where sales volume growth of 55% was achieved over the previous fiscal year. In procurement, continuing efforts are to uphold a good market channel in the Middle East and to strengthen its sourcing ability in South America and West Africa. The Group's core business in fuel oil and marine bunkering continued to advance steadily during this period and through its preceding policy adjustments. The Group is focusing on Singapore, China, Taiwan, Korea, Japan and other Asia-Pacific markets. In FY2015, we combined supply chain resources by reducing or sub-letting vast storage capacity which at the same time lowered costs and improved efficiency. This enabled us to focus on developing China and Singapore markets. Through optimizing the trading team, completed with oil trading, oil storage facilities, bunkering and marine transportation, we have attained a comprehensive integration which bolstered the value-added chain into further development.

-Cont'd-

Marine Transportation

A combination of factors from both supply and demand sides have resulted in a significant improvement in our financial performance in FY2015. Our fleet has been further expanded to 12 ships, after acquisition of two new bunker barges from China. The expansion has improved both our economy of scale and operational flexibility. The fleet revenue of the Group grew by an impressive 28% to HK$1.37 billion in FY2015. The Group continue to benefit from the marketing strategies of focusing on Chinese imports and the Chinese state owned oil companies. In FY2015 more than 75% of our total revenue was derived from transporting cargoes into China and this ratio increases to 80% for our VLCC fleet. In fact, from January to June 2015, 100% revenue of our VLCC fleet comes from trade to China.

Oil Storage and Terminal Facilities

The two oil storage and terminal facilities under construction in Zhoushan and Dalian are located in China's primary deep-water harbours and large-scale commodity trading centres. The project at Zhoushan Waidiao Island is located in a pilot region where the government will focus on developing the maritime economy and leading regional development. The Zhoushan Oil Storage facility carries a total capacity of 3.16 million cubic meters. The Phase 1 storage facilities of the Zhoushan project are being developed, with 65% of construction work already completed while development of the Zhoushan Phase 2 project commenced in June 2015. Phase 1 and Phase 2 are expected to be operational in the first half of 2016 and at the end of 2016, respectively. The oil storage and terminal facilities in Dalian are ready for the supply of water, electricity and roads, and land leveling. Commencement of operation is expected within three years. The Group will become one of the top five oil storage service providers globally and receive stable rental income upon the commencement of the above operations.

Dr. SIT Kwong Lam, Chairman of Brightoil Petroleum, said, "Looking forward, with the smooth implementation of the 'One Belt, One Road' strategy, the energy industry will embrace new opportunities of development. As the new Tuzi No. 4 deep well was discovered with promising gas reserves, achieving the yield of the gas field will significantly improve the natural gas production of the Group, and greatly increase the upstream reserves and production of gas and oil; meanwhile, further bring the synergy of online and offline business supply chain into full play, and improve the overall effectiveness of the Group.

Additionally, the Group will capture the opportunities from China's great effort to encourage and develop Internet-based economy, combining which with the unique advantages of the Group's oil industry chain. With the smooth development of the innovative oil energy ecommerce platform business, the Group will effectively consolidate the industry chains of its downstream businesses, integrate domestic and overseas superior resources, capture great market opportunities and exponential growth in its onshore and offshore oil supply business and downstream business industry chain, so as to bring substantial rewards to the Group.-End-

About Brightoil Petroleum   Brightoil Petroleum (Holdings) Limited is a resource-based energy enterprise focusing on upstream oil and gas resources exploration, along with further developments midstream and downstream. The Group is principally engaged in the exploration, development and production of Upstream Oil and Gas Fields, Marine Transportation, Oil Storage and Terminal Facilities and International Trading and Bunkering Business.   The Group has three oil and gas field projects in its portfolio, including Dina 1 Gas Field, Tuzi Gas Field and Caofeidian Field in Bohai Bay. The Company's interest in 2P storage is expected to reach approximately 86 million barrels of oil equivalent. When all these three areas are in operation, Dina 1, Tuzi and Bohai will reach a daily net production of approximately 25,000 barrels of oil equivalent, and an annual net production of approximately 9 million barrels of oil equivalent.   The Group currently operates four Aframax Oil Tankers and five VLCCs, and has a total capacity exceeding 2 million tonnes.   The Group's oil storage facility on Waidiao Island in Zhoushan, with a total capacity of 3.16 million cubic meters, is under construction. The facility will be equipped with 13 berths which can accommodate vessels from 1,000 to 300,000 deadweight tonnage. Meanwhile, the Group's oil storage facility on Changxing Island in Dalian, with a total capacity of 7.19 million cubic meters, is also under construction. The facility will be equipped with 13 berths to accommodate vessels from 1,000 to 300,000 deadweight tonnage.   The Group is one of the largest marine bunkering service providers in China with services expanded to global ports. The Group's tradable range of products is diversified into fuel oil, crude oil, gas oil, as well as petrochemical and the related petroleum products.   The Group will continue to develop its upstream business by stretching its tentacles into the exploration, development and production of oil fields with a view to becoming one of the leading resources-based energy conglomerates in the world.
 

For additional information about Brightoil Petroleum, please visit the Company's website at www.brightoil.com.hk.

Press Release distributed by: Brightoil Petroleum (Holdings) Limited For media enquiry, please contact Wonderful Sky Financial Group Limited Elaine Wang / Ivy Zhang Tel: (852) 2851 1038 Fax: (852) 2598 1588 Email: elainewang@wsfg.hk /ivyzhang@wsfg.hk

End of Press Release+++++Document: http://n.equitystory.com/c/fncls.ssp?u=MMERWHSFNXDocument title: BRIGHTOIL: Annual Performance of Brightoil Improved against a Downtrend, Upstream and Downstream Businesses Achieved Synergy with Profit Witnessing Significant Increase of 131.4%
Key word(s): Final Results 23/09/2015 Dissemination of a Press Release, transmitted by EQS TodayIR - a company of EQS Group AG.The issuer is solely responsible for the content of this announcement.Media archive at www.todayir.com
396783  23/09/2015 

Authors: EQS Asia Business News

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