Rex International Holding Limited: FY2025 Profit Guidance and Outlook

Rex International Holding Limited has issued a profit guidance for the full year ended 31 December 2025. The company’s Board has informed shareholders that the Group is expected to report a net loss for FY2025, primarily due to significant technical complications during drilling operations in Benin, which led to a substantial increase in costs and production delays.

Key Financial Highlights

As of this announcement, Rex has not released detailed financial metrics, such as revenue, earnings per share, or specific profit and loss figures. The guidance is based on a preliminary review of draft unaudited consolidated financial results.

Exceptional Expenses and Operational Challenges

• Technical Complications: The Group faced significant technical issues during drilling operations in Benin.
• Increased Costs: These complications resulted in a material increase in drilling costs.
• Production Delays: There was a production delay of several months in the second half of FY2025, further impacting performance.

Chairman’s Statement

The Chairman, John d’Abo, addressed shareholders with the following statement:

“The Board of Directors (“Board”) of Rex International Holding Limited (“Rex International Holding”, “Rex” or the “Company”, and together with its subsidiaries, the “Group”) wishes to inform shareholders of the Company that the Group is expected to report a net loss for the full year ended 31 December 2025 (“FY2025”). Based on the preliminary review of its draft unaudited consolidated financial results for FY2025, the Group expects losses mainly due to significant technical complications encountered during the drilling operations in Benin, resulting in a material increase in drilling costs and a production delay of several months in 2H FY2025.”

The tone of the statement is cautionary and transparent, admitting operational setbacks and their financial implications.

Dividend and Capital Actions

No information regarding proposed dividends, share buybacks, or other capital actions was disclosed in this announcement.

Forward-Looking Guidance

• Rex is still finalizing its results for FY2025 and plans to release the unaudited consolidated financials on or before 27 February 2026.
• The company has advised shareholders to exercise caution in trading its shares until more information is available.

Conclusion and Investment Recommendation

Summary: The financial outlook for Rex International Holding Limited appears weak based on the current disclosure. The anticipated net loss is attributed to unforeseen technical and operational difficulties, leading to higher costs and delays in production. The lack of detailed financial metrics or positive forward-looking statements further underlines the cautious outlook.

• For Existing Shareholders: Exercise caution and closely monitor the upcoming financial disclosures. Consider reassessing your investment if the operational issues persist or are not adequately addressed in the detailed results.
• For Prospective Investors: It may be prudent to abstain from entering a new position until more clarity is provided in the forthcoming financial results and the company demonstrates resolution of its operational challenges.

Disclaimer: This analysis is based solely on the information provided in the company’s latest announcement. It does not constitute financial advice. Investors should consult their financial advisors and consider their own risk tolerance before making investment decisions.

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