ENN Energy (2688) H2 2024 earnings summary

Executive summary

• Core profit from domestic business rose 10.2% year-on-year to RMB 6.71 billion, offsetting a sharp decline in overseas wholesale gas profit.

• Retail gas sales volume increased 4.2% to 26.2 billion m³, with 1.62 million new residential customers added.

• Integrated energy (IE) sales volume surged 19.8% year-on-year to 41.57 billion kWh, with gross profit up 19.9%.

• Value-added business (VAB) gross profit increased 18% to RMB 2.97 billion; average transaction value per customer rose from RMB 476 to RMB 612.

• Free cash flow improved by RMB 630 million to RMB 3.73 billion, supporting a 45% dividend payout ratio and a total dividend of HK$3 per share.

Financial highlights

• Revenue declined 3.5% year-on-year to RMB 109.85 billion; gross profit down 6.5% to RMB 13.41 billion.

• Profit attributable to shareholders fell 12.2% to RMB 5.99 billion; basic EPS down 11.6% to RMB 5.35.

• Retail gas gross profit increased 12.8% year-on-year to RMB 6.23 billion.

• Integrated energy business revenue and gross profit increased 5.2% and 16.4% to RMB 15.27 billion and RMB 2.22 billion.

• Value-added business revenue and gross profit grew 24.1% and 18% to RMB 4.59 billion and RMB 2.97 billion.

Outlook and guidance

• Expects intensified complexity and uncertainty in 2025's economic environment, including weak demand and volatile energy prices.

• Plans to leverage AI and digital intelligence for business upgrades and operational efficiency.

• Focus on expanding customer base, optimising resource pool, and driving growth in integrated energy and value-added businesses.

• Will maintain stable dividend policy, with future payouts based on operating needs and cash flow.