China Oil And Gas Group (603) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2026 was HK$7,854 million, down 1% year-over-year, with gross profit up 11% to HK$1,093 million and gross margin rising to 14% from 12% last year.

• Profit attributable to owners was HK$196 million, a 22% decrease year-over-year, while total comprehensive income was HK$819 million.

• The Group maintained stable liquidity and financial position, with total assets of HK$22,130 million and gearing ratio at 122%.

Financial highlights

• Revenue decreased by 1% year-over-year to HK$7,854 million; gross profit increased by 11% to HK$1,093 million.

• Gross margin improved to 14% from 12% last year.

• Profit attributable to owners was HK$196 million, down 22% year-over-year.

• Administrative expenses rose 34% to HK$270 million, mainly due to R&D.

• Finance costs increased to HK$239 million; weighted average cost of debt was 4.5%.

Outlook and guidance

• The Group will focus on strengthening its core gas business, deepening customer engagement, and accelerating digital intelligence transformation.

• Plans include upgrading pipeline networks, enhancing safety, and leveraging AI for operational efficiency.

• The overseas oil and gas segment will pursue reserve replacement and capitalize on high oil prices and LNG Canada project.

• Integrated energy and value-added services will be expanded, with a focus on customer-centric solutions.