ENN Natural Gas (600803) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 reached RMB 98,778 million, up 2.93% year-over-year, with net profit attributable to shareholders rising 12.51% to RMB 3,491 million.

• Core profit declined 18.35% year-over-year to RMB 3,816 million, mainly due to lower gross profit and derivative-related impacts.

• Q3 2024 revenue was RMB 3,174,930,000, up 10.46% year-over-year, and net profit for Q3 was RMB 96,151,000, up 6.89%.

• Natural gas consumption in China rose 9.9% year-over-year, supporting business expansion.

Financial highlights

• Gross profit decreased 13.7% year-over-year to RMB 14,098 million, reflecting margin pressure.

• EBITDA increased to RMB 22,040 million, with net gearing ratio rising to 45.0% from 38.0% a year ago.

• Operating cash flow for the first nine months was RMB 715,130,000, up 0.40% year-over-year.

• Basic and diluted EPS for the first nine months were both RMB 1.13, up 11.88% year-over-year.

• Total assets at Q3-end were RMB 13,514,017,000, up 0.42% from year-end 2023.

Outlook and guidance

• Dividend payout policy for FY2023–FY2025 targets annual increase of at least RMB0.15/share and payout ratio of no less than 30% of core profits.

• Special dividends from coal mine asset disposals scheduled for FY2023–FY2025.

• Profit growth in energy production and infrastructure segments contributed positively, while last year’s large derivative settlement and reduced forex losses also impacted results.