China Oil And Gas Group (603) investor relations material

Executive summary

• Revenue for the first half of 2025 was HK$7,890 million, down 15% year-over-year, mainly due to lower natural gas demand and a slump in the real estate market.

• Profit attributable to owners was HK$251 million, a 7% decrease compared to the same period last year.

• Gross profit margin remained stable at 12%, while net profit margin improved to 7%, up 1 percentage point year-over-year.

• Oil and gas production in Canada increased 5% year-over-year, with proved and probable reserves up 11%.

• No interim dividend was declared for the period.

Financial highlights

• Revenue: HK$7,890 million (down 15% year-over-year).

• Gross profit: HK$986 million (down from HK$1,135 million), gross margin stable at 12%.

• Profit attributable to owners: HK$251 million (down 7%).

• Administrative expenses: HK$202 million (down 13%); finance costs: HK$213 million.

• Net debt-to-assets ratio: 23% (up from 20% at year-end 2024).

Outlook and guidance

• National natural gas consumption is expected to rebound in the second half of 2025, driven by macro policies and heating season demand.

• The Group will focus on regional integration, digital transformation, and diversification into new energy and value-added services.

• Production capacity for coal-derived clean energy is expected to recover by year-end after short-term pressure from environmental upgrades.

• Plans to accelerate integration, scale expansion, and service upgrades under the “Five-pronged” development system.