China Oil And Gas Group (603) H2 2024 earnings summary

Executive summary

• Profit for the year surged 84% year-over-year to HK$701 million, despite a 4.7% decline in revenue to HK$17,655 million.

• Gross profit increased 10.8% to HK$2,184 million, with gross margin improving to 12.4% from 10.6%.

• Recurring profit attributable to owners rose 59% to HK$483 million, and net profit attributable to owners was HK$181 million, reversing a loss of HK$232 million last year.

• Operating profit increased 29.8% to HK$1,356 million, aided by lower administrative expenses and improved efficiency.

• No final dividend was proposed for 2024.

Financial highlights

• EBITDA grew to HK$2,532 million from HK$2,417 million, up 5% year-over-year.

• Net assets decreased 5% to HK$7,212 million; cash and equivalents plus time deposits rose 34% to HK$4,348 million.

• Operating cash flow increased 17% to HK$1,909 million; capital expenditure declined 7% to HK$847 million.

• Administrative expenses fell 21.3% to HK$554 million; finance costs rose to HK$465 million.

• Net impairment losses: HK$211 million on financial/contract assets, HK$91 million on associates.

Outlook and guidance

• Focus remains on expanding industrial and commercial user base in natural gas distribution and stabilizing growth in 2025.

• Continued investment in pipeline infrastructure, digital transformation, and new user connections across 13 provinces.

• Emphasis on high-quality development, sustainable growth, and international expansion.