CHK Oil Limited released a profit alert indicating a turnaround to a net profit attributable to shareholders of no less than HK$16.20 million for the financial year ending 31 December 2025, against a HK$21.50 million loss recorded in FY2024.
The projected swing back to profitability is driven by three primary factors:
1. Reversal of asset impairments • A HK$51.40 million reversal of impairment on oil and gas properties and related intangible assets in the Utah Gas and Oil Field, supported by an updated reserves evaluation that increased probable gas volumes. In FY2024, the same asset class recorded an impairment loss of HK$28.90 million.
2. Absence of one-off penalties • No lease-related penalties were booked in FY2025, compared with a HK$4.70 million penalty levied by the U.S. Bureau of Land Management in FY2024.
3. Improved receivables profile • A HK$0.20 million reversal of impairment on trade and other receivables contrasts with a HK$6.00 million provision in the previous year.
Management emphasized that the FY2025 figures are based on unaudited consolidated accounts and preliminary third-party valuations; final audited results are scheduled for release on 31 March 2026. Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares until audited results are available.
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