CITIC Resources profit drops 57% amid commodity price decline

CITIC Resources Holdings Limited reported a 57.0% year-on-year decrease in profit attributable to ordinary shareholders, settling at HK$151,672,000 for the six months ended June 30, 2025, down from HK$353,113,000 in the same period last year. This decline is primarily attributed to a continuous drop in crude oil and coal prices. Despite the challenging market, the company's revenue saw a significant increase of 137.9% to HK$9,382,263,000, driven mainly by a substantial expansion in oil and gas trading, which accounted for 81.3% of total revenue.

The company maintained a strong financial position, with cash and deposits amounting to HK$4,419,129,000 as of June 30, 2025, a 117.5% increase from the prior year. Total assets grew by 25.7% to HK$15,934,829,000. However, total debt also rose by 116.9% to HK$4,363,325,000, leading to a gearing ratio of 51.0%, up from 35.2% in December 2024. Earnings per share (basic) decreased to HK1.93 cents from HK4.49 cents.

The crude oil segment’s working interest output decreased by 1.7% year-on-year, contributing HK$0.13 billion to profit, a 39.4% decrease. The aluminium smelting segment recorded a loss of HK$8.4 million, impacted by high alumina prices. The coal business also faced a loss of HK$8.7 million due to declining PCI coal prices and lower sales volumes.