Hong Kong-listed E&P Global (E&P Global Holdings Limited) reported a significant turnaround for the financial year ended 31 March 2026, driven by a surge in trading revenue and a sharp reduction in non-cash impairment charges.
Revenue and Profitability • Group revenue climbed 42.95% year on year to HK$699.66 million, fuelled mainly by higher diesel and gasoline sales in South Korea and initial coal trading in mainland China. • Gross profit more than doubled to HK$17.27 million (FY2025: HK$6.19 million). • Loss attributable to shareholders narrowed to HK$16.57 million from HK$329.05 million a year earlier, translating into a basic and diluted loss per share of HK$0.00 (FY2025: HK$2.27). • Other net gains totalled HK$64.09 million (FY2025: loss of HK$305.50 million), bolstered by a HK$103.02 million waiver of interest on convertible notes and a HK$37.27 million gain on note conversion, partly offset by a HK$62.83 million write-off of property, plant and equipment and a HK$13.33 million impairment on exploration and evaluation assets. • Finance costs rose to HK$100.54 million (FY2025: HK$19.07 million) due to imputed interest on outstanding convertible notes prior to their conversion.
Segment Performance • Trading (diesel, gasoline and related products) generated all reported revenue and delivered segment profit of HK$12.12 million. • Mining recorded no revenue and a segment loss of HK$76.53 million, reflecting impairment and development expenses linked to the Russian coal project.
Balance Sheet and Liquidity • Total equity turned positive to HK$1.17 billion (31 March 2025: capital deficiency of HK$1.98 billion) following the June-to-September 2025 full conversion of US$400.39 million convertible notes into 12.49 billion new shares. • Net current assets stood marginally positive at HK$0.31 million (31 March 2025: net current liabilities of HK$87.12 million). • Cash and cash equivalents increased to HK$5.16 million. • Interest-bearing borrowings totalled HK$88.21 million, all now classified as non-current after lenders agreed to extend maturities to 31 December 2027. Shareholder loans of HK$169.55 million carry the same extension. • Gearing ratio (total interest-bearing borrowings/total assets) rose to 12.64% from 9.90%.
Russian Mining Licences The Arbitration Court of Moscow ruled on 15 April 2026 that the April 2025 licence revocation affecting Lapichevskaya Mine was unlawful and ordered the Federal Agency for Mineral Resources to rectify violations. Russia’s Ministry of Natural Resources has appealed; a hearing is scheduled for 3 August 2026.
Going Concern Measures The Board cites extended shareholder loans, committed third-party facilities, ongoing trading cash flows, and prospective equity issuance— including a 27 June 2026 debt-capitalisation agreement for up to 1.61 billion new shares— as key support for at least 12 months of operations.
Dividend No dividend was declared for FY2026 (FY2025: nil).
Audit Qualification Auditors issued a qualified opinion relating to uncertainties in the valuation of exploration and evaluation assets, specifically assumptions on production timing and licence renewal.
Outlook Management plans to deepen its fuel-trading footprint in Korea, pursue cost efficiencies, and advance the Russian coal project while contesting the licence appeal. The Group will also explore further equity funding options to strengthen liquidity.