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Brightoil takes charges on energy assets, turns in $67m H2 loss

Brightoil takes charges on energy assets, turns in $67m H2 loss
Brightoil Petroleum plunged to a HKD522.9m ($67.2m) loss in the second half of 2015, from a HKD561.1m profit in the previous corresponding period mainly due to charges taken on the value of its upstream assets in the Caodeidian field.

Revenue however also fell by half to HKD21.65bn from HKD44.89bn previously mainly due to the decrease of global oil prices, Brightoil said in a stock market announcement. This was however ameliorated by the increase in revenue from the marine transportation business and the upstream gas business remained steady. 

The marine transportation business actually almost doubled pre-tax profit from the previous year to HKD432m from the HKD225m recorded for the previous corresponding period. The upstream oil and gas business however saw pre-tax profit fall to HKD182m mainly due to the voluntary impairment of Caofeidian oilfields in China of HKD619m made because of the significant decline in global oil prices.  Brightoil pointed out however that the impairment is non-cash in nature and is not expected to have any material impact on the cash flows and the business operations of the group. 

Brightoil has taken advantage of the slow market to transform itself into a full service upstream and downstream energy needs provider and has officially launched its energy and financial e-commerce platform Brightoil Online, the company said. "The synergy of online and offline business supply chain will be in full play and improve the overall effectiveness of the group," it added.