New Times Energy recorded revenue of 10,403 million and profit of 215 million for the first half of 2022

Highlights

• Recorded revenue of HK$10,402.8 million, representing a growth of 111.1% YOY
• Recorded a profit of HK$214.9 million, the turnaround in the Group�s profitability was primarily attributable to the operating profits generated by NTEC, the Group’s wholly owned Canadian oil and gas subsidiary, and higher energy commodity prices during the period
• Earnings per share were HK2.45 cents
• Operates over 800 active wells in Canada with current average daily oil and gas production of over 12,700 boe per day (95% natural gas)
• The Group has set up vertical farming operations at Discovery Park and it is expected to commence operations in 2023
• The Group is exploring ways to work with local authorities and governing bodies to achieve the common goal of net zero emissions, through eco-investment opportunities such as Blue & Green Hydrogen and Carbon Capture, Utilization and Sequestration

Financial Highlights

	Six months ended 30 June
HK$ ‘000	2022	2021	Change
Revenue	10,402,767	4,928,637	111.1%
Gross Profit	294,881	5,421	5,339.6%
Profit (loss) for the period	214,868	(21,681)	–
Basic earnings (loss) per share (HK cents)	2.45	(0.25)	–

HONG KONG SAR – Media OutReach – 26 August 2022 – New Times Energy Corporate Limited (“the Company” or “New Times Energy”, together with its subsidiaries, the “Group”, HKSE stock code: 166) announced its annual results for the six months ended 30 June 2022. During the period, the Group recorded total revenue of HK$10,402.8 million (2021 first half: HK$4,928.6 million), representing a growth of 111.1% year-on-year, and recorded a profit of HK$214.9 million (2021 first half : loss of HK$21.7 million). The turnaround in the Group’s profitability was primarily attributable to the operating profits generated by NTE Energy Canada Ltd. (“NTEC”), the Group’s wholly owned Canadian oil and gas subsidiary, and higher energy commodity prices in the first half of 2022.

During the periord, earnings per share were HK2.45 cents (2021 first half: loss of HK0.25 cents per share).

BUSINESS REVIEW

CANADA

Greater Sierra Area, Horn River Basin, Wapiti and Willesden Green

The Group’s Canadian oil and gas assets, consisting over 800 active wells and spanning approximately 761,000 acres (3,080 km2) of land. During the six months ended 30 June 2022, NTEC’s average daily oil and gas production was approximately 12,700 boe per day (95% natural gas) and the average realized price was C$38.7 per boe. Optimization programs to enhance production rates of NTEC’s existing wells have demonstrated positive results in the first half of 2022, with the Group anticipating continued material increases in production, revenues and profits in the coming year. Drilling of NTEC’s 6 development wells commenced in June 2022 which will further enhance the financial performance of the Group towards the fiscal year end of 2022.

Meanwhile, the Group is exploring ways to work with local authorities and governing bodies to achieve the common goal of net zero emissions, through eco-investment opportunities such as Blue & Green Hydrogen and Carbon Capture, Utilization and Sequestration (“CCUS”).

Discovery Park

The Group operates Discovery Park at Campbell River, British Columbia, providing industrial land parcels, buildings, and warehouses for businesses to lease. The multi-use site is currently leased to tenants in industries including but not limited to green data centres, modular construction, marine services, and steel fabrication. The Group has already engaged the services of a world-renowned consulting group, Stantec Inc., to provide a master plan for a complete redevelopment of Discovery Park into a green-tech hub to attract new tenants that align with the Group’s ESG mandate. The site is an ideal candidate for aquaculture as well as green hydrogen, given the low-cost electricity on site and ample supply of ocean and fresh water. The Group is actively exploring ways to bring such projects to fruition through support and cooperation from local and federal government.

On 25 June 2022, the Group signed a definitive agreement with CubicFarm Systems Corp. (TSX:CUB) to set up vertical farming operations at Discovery Park. When the vertical farming commences operations in 2023, the Group anticipates that over a million kilograms of green vegetables will be produced monthly.

ARGENTINA

In Argentina, the Group is experiencing a significant positive cash flow from operation of approximately HK$40.5 million, although the financial statements at local level still reflect a net deficit of approximately HK$17.7 million, due primarily to the effects of depreciation, foreign exchange losses and deferred tax charges. Monthly cash surpluses from the Argentina operation are being repatriated.

COMMODITIES TRADING

During the six months ended 30 June 2022, the Group’s physical gold and silver trade business managed a total trading volume of HK$9,813.7 million. However, net margin for the period was reduced by the fixed costs incurred from the delayed opening of the Group’s new precious metals refinery in Hong Kong. Due to global supply chain issues, hindering the timely delivery and installation of specialized equipment at the plant, the target commencement date of operation for the Group’s refinery of gold, silver and other precious metals is now deferred to October 2022.

The Group believes that the business of commodity trading of precious metals will restore to profitability, once the new gold and precious metals refinery is operational. By bringing the refining process in-house, the Group anticipates higher margins in the long term.

Looking ahead, Mr. CHENG, Kam Chiu Stewart Chairman of the Group said, “As recent global events have demonstrated, the necessity for stable energy sources like oil and gas while the world transitions to renewables will remain strong. NTEC has an inventory of no less than 12 highly economic drilling locations within its lands that will augment existing cashflow. The optimization program of the NTEC’s existing wells will also have positive effects on the profitability and cashflow in the Group’s oil and gas segment. The Group is particularly optimistic about the potential for involving in activities that will significantly reduce carbon emissions with a goal of achieving net-zero. We are prepared and excited about our ability to create long term value for our shareholders. ”
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About New Times Energy Corporation Limited

New Times Energy Corporation Limited (HKSE stock code: 166), headquartered in Hong Kong, is an international resource company that operates natural gas weighted assets in Alberta and British Columbia and is taking steps to transform its business model into clean and sustainable energy, in its effort to be a part of the global “Energy Transition” that is underway, with social responsibility towards the environment and climate change at the forefront.