IDG Energy seeks US shale project exit

Monday, June 24, 2019

IDG Energy Investment (0650) is weighing exiting from a shale oil project in the United States and plans more cooperation with Foxconn Technology, its second-largest shareholder, president Liu Zhihai said.

Liu said the Sino-US trade war will have limited effect on the demand for US liquefied natural gas, as LNG is in short supply in China.

The company will hedge the potential risk in the US shale oil project with financial derivatives, and will seek a proper time for exit, said Liu.

Net profit for the year ended March 31 jumped by 88.91 percent to HK$27.38 million.

The basic earnings per share were 0.437 HK cents.