Citic Resources’ interim profit surges on higher oil, commodity prices
The company says its coal segment returned to profit in the first-half from a loss in the year-earlier period
Citic Resources Holdings reported that its profit attributable to shareholders surged 81.4 per cent to HK$185 million (US$23.7 million ) for the six months ended June 30, from a year earlier because of improvement in oil and commodity prices.
The company’s coal segment returned to profit despite substantial disruptions as a result of inclement weather, compared to a loss for the corresponding period in 2016, it said on Sunday in a stock exchange filing.
In addition, a large increase in the value of its interest in Australia-based Alumina, a bauxite miner, alumina refiner and aluminium smelter, along with a share of profit from its investment in Citic Dameng Holdings were also key factors contributing to the company’s improved performance, it said.
The Yuedong oilfield in China and the Seram Block in Indonesia achieved turnaround in results, and Citic Canada Energy Limited, a joint venture through which the company manages and operates the Karazhanbas oilfield in Kazakhstan, continued to record a profit.
Consolidated net current assets also rose 40 per cent to HK$2.47 billion, while equity attributable to shareholders increased 14 per cent to HK$5.49 billion, the oil and metals unit of state-backed finance-to-property conglomerate said.