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

Executive summary

• H1 revenue was HK$7,854 million, down 1% YoY; gross profit rose 11% to HK$1,093 million and gross margin increased to 14% from 12%.

• Profit attributable to owners fell 22% to HK$196 million; adjusted underlying operating profit declined 10% to HK$228.5 million.

• Priorities include strengthening core gas operations, expanding digital and integrated energy services, and improving customer engagement.

Financial highlights

• Revenue was HK$7,854 million, down 1% YoY; profit before tax was HK$705 million and profit for the period was HK$501 million.

• Gross profit was HK$1,093 million, up 11% YoY; EBITDA was HK$1,160 million, up 3%.

• Profit attributable to owners was HK$196 million, down 22%; basic and diluted EPS were HK 3.8 cents, down from HK 4.8 cents.

• Administrative expenses rose 34% to HK$270 million, while finance costs increased to HK$239 million; weighted average cost of debt was 4.5%.

• No interim dividend was declared.

Outlook and guidance

• FY gas sales volume is expected to decline 6%–7% YoY; blended purchase-sales margin is expected to remain stable within CNY 0.01–0.02/m³, subject to weather.

• Priorities include strengthening core gas operations, upgrading pipeline networks, enhancing safety, accelerating digital transformation and expanding integrated energy services.

• Overseas oil and gas operations will pursue reserve replacement and balance production, costs and returns, while leveraging high oil prices and LNG projects.