ENN Natural Gas (600803) H1 2024 earnings summary

Executive summary

• Net profit attributable to shareholders rose 14.8% year-over-year to RMB 2,530 million, despite a 0.3% decline in total revenue to RMB 67,014 million.

• Gas sales volume reached 19.115 billion m³, up 5.8% year-over-year, with platform trading gas up 21.0%.

• Retail gas sales to industrial/commercial users grew 5.4%, residential up 3.1%.

• Pan-energy business sales rose 26.0% year-over-year, with 332 projects in operation.

• ESG performance improved, with MSCI ESG rating at A and Sustainalytics risk score at 22.2.

Financial highlights

• Core profit attributable to shareholders fell 14.8% year-over-year to RMB 2,699 million.

• Gross profit margin compressed, with gross profit down 13.7% year-over-year.

• Operating cash flow remained positive at RMB 4.82 billion, supporting increased dividend payout.

• Net gearing ratio improved to 27.8% from 45.8% year-over-year; interest-bearing liabilities decreased to RMB 30.86 billion, and cash on hand reached RMB 15.93 billion.

• Basic EPS was RMB 0.82, up 15.5% year-over-year; core EPS was RMB 0.88.

Outlook and guidance

• Annual cash dividend for 2023–2025 will not be less than RMB 0.91, RMB 1.03, and RMB 1.14 per share (pre-tax), with payout ratio not less than 30% of core profits.

• Special dividends from coal mine asset disposals set at RMB 0.25, RMB 0.22, and RMB 0.18 per share (pre-tax) for FY2023–FY2025.

• Full-year gas sales target set at 40 billion m³, with focus on pan-energy and smart home business growth.

• LNG receiving station expansion to complete in Q4 2025, boosting capacity to over 10 million tons/year.