China Oil And Gas Group (603) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 7.1% to HK$18,528m; gross profit fell 7.1% to HK$1,971m, and owners’ attributable result swung to a HK$232m loss from HK$730m profit.

• Total gas sales and transmission volume increased 18.5% to 7,008m m³, driven by transmission growth of 68.4%.

Financial highlights

• Revenue increased 7.1% to HK$18,527.8m; gross profit declined 7.1% to HK$1,971.1m, with gross margin down to 10.6% from 12.3%.

• Operating profit fell to HK$1,044.8m from HK$1,722.8m; profit before tax was HK$720.5m and profit for the year HK$380.2m.

• Owners’ attributable loss was HK$232.5m versus profit of HK$730.1m; basic and diluted EPS were both a loss of 4.7 HK cents versus earnings of 14.9 HK cents.

• Adjusted for identified one-off items, 2023 included HK$201m impairment losses on financial and contract assets and HK$141m impairment on an associate; 2022 included an HK$118m oil and gas property impairment reversal.

• Administrative expenses rose 38.6% to HK$704m; finance costs fell to HK$433m from HK$453m.

Outlook and guidance

• 2024 priorities include growing market share, improving pricing and resource coordination, cost control, digital transformation, and developing integrated energy and new-energy businesses.

• Plans include advancing photovoltaic, hydrogen utilisation and wastewater utilisation initiatives, alongside upstream-downstream integration and investment controls.