New | Citic Resources reports HK$850 million in losses amid commodities rout
Citic Resources recorded HK$850 million in net losses for the first-half of this year, weighed down by widespread gloom in commodity markets.
Revenue plunged 86 per cent year-on-year for the six-month period to June 30. Operating losses stood at HK$453 million. Citic Resources, a unit of state-owned conglomerate Citic Group, blamed commodity prices and China’s slowdown for its deficit.
“Global oil prices which fell heavily in [the second-half of] 2014 remained low and have had a special impact on the group’s operations and performance during the period. In addition, the group’s import and export of commodities business faced strong headwinds from decelerated economic growth in China,” the company, which trades crude oil, coal and metals, said in a statement to the Hong Kong stock exchange.
Citic Resources said it expected “increasing business challenges” ahead as there is no sign of improvement in the external environment.
The company also wrote off HK$565 million in the mark-to-market assessment of the fair value of its equity investment in Australia’s Alumina Limited, which Citic bought into in 2013.
