STRONG PETRO (00852) has announced a profit warning, indicating that based on preliminary unaudited management accounts, the group expects to record an attributable loss to its owners ranging from approximately HK$325 million to HK$340 million for the year ending December 31, 2024. This compares to an audited attributable loss of about HK$95.4 million for the year ended December 31, 2023.

The anticipated significant increase in loss is primarily attributed to several factors: (i) an increased impairment loss on interests in associates, (ii) a rise in impairment losses on property, plant, and equipment, (iii) an increase in impairment losses on right-of-use assets, (iv) a decline in gross profit, (v) a decrease in gains from derivative financial instruments related to crude oil trading and petroleum products, and (vi) an increase in administrative and other expenses. These negative factors were partially offset by a reduction in impairment losses on unlisted equity investments.