China Oil And Gas Group (603) investor relations material

Executive summary

• Revenue declined 14.1% year-over-year to HK$15,159 million, with gross profit down 5.6% and profit for the year down 11%.

• Profit attributable to owners fell 55% year-over-year, while recurring profit attributable to owners dropped 23%.

• Net profit attributable to owners was HK$80.7 million, with total comprehensive income for owners at HK$367 million, reversing a loss last year.

• The Group maintained robust operations, expanded its user base, and advanced digital transformation and integrated energy projects.

• No major safety incidents occurred, and management initiatives improved operational efficiency and risk resilience.

Financial highlights

• Gross profit margin improved to 14% from 12% year-over-year.

• EBITDA was HK$2,432.6 million, down 4% from the previous year.

• Net assets increased 8% to HK$7,758 million; total assets rose 7% to HK$22,073 million.

• Operating cash flow decreased 26% year-over-year to HK$1,462 million.

• Finance costs decreased to HK$430 million from HK$465 million.

Outlook and guidance

• Focus on expanding integrated energy and value-added services, leveraging digital transformation and AI.

• Plans to optimize upstream Canadian oil and gas operations and deepen core gas business in China.

• Aims to build a diversified growth model and enhance risk management and compliance.

• Focus remains on expanding industrial and commercial user base due to higher demand.