Jinwu Financial News | United Energy Group Limited (00467) issued a profit warning, preliminary review of the Group's unaudited comprehensive management accounts for the year ended 31 December 2023 and other available data. The Group expects to record an unaudited consolidated net loss of about HK$1.5 billion to HK$1.8 billion for the year ended 31 December 2023, a decrease of about HK$2,601 billion from the audited consolidated net profit attributable to shareholders for the year ended 31 December 2022, mainly due to the impairment of one-time reserves and the total write-off of dry wells for one-time exploration of about $4.4 billion HKD.
The impairment of one-time oil and gas reserves mainly reflects the amount of unaudited oil reserves in Iraq's Zone 9 (B9) contract area as of December 31, 2023, of 482 million barrels in the preliminary reserves report prepared by ERCE, an external reserves assessment agency, which is 247 million barrels lower than the audited quantity as of 31 December 2022. The main reasons for the decline include stratigraphic pressure falling faster than expected in the main production layer of the Yamama reservoir, and the physical properties and connectivity of the Mishrif reservoir falling short of expectations.