Kunlun Energy Company (135) H1 2024 earnings summary

Executive summary

• Revenue increased 6.72% year-over-year to RMB 92,922 million, with net profit up 2.58% to RMB 3,305 million and a first interim dividend of RMB 16.41 cents per share declared.

• Retail gas sales volume rose 10.25% to 16,302 million cubic metres, with total natural gas sales volume up 10.55% to 26,438 million cubic metres.

• Profit before income tax increased 6.74% to RMB 7,249 million, and basic EPS was RMB 38.17 cents.

• Strong operating cash flow of RMB 5,352 million was reported.

• 449,000 new users were added, reaching a total of 16.05 million users.

Financial highlights

• Natural gas sales revenue grew 9.74% to RMB 76,660 million, while LPG sales revenue declined 6.66% to RMB 12,932 million.

• LNG processing and terminal business revenue rose 9.14% to RMB 5,662 million, with pre-tax profit up 22.89% to RMB 1,648 million.

• EBITDA reached RMB 9,915 million, up 1.91% year-over-year.

• Basic and diluted EPS for 1H2024 was RMB 38.17 cents.

• Average finance cost decreased to 2.97% from 3.50% year-over-year.

Outlook and guidance

• Retail natural gas sales volume is expected to grow by 10%, with 800,000 new connected users targeted.

• LNG terminal utilization rate is guided at 90%, and LNG plant processing volume is projected to rise by 7%.

• LPG sales volume is forecast at 5.5 million tons, and equity crude oil sales at 7.5–8.0 million barrels.

• The company expects a complex external environment in the second half, with high uncertainties in international natural gas supply and demand.

• Focus areas include optimizing sales structure, expanding LNG and LPG businesses, advancing new energy projects, and enhancing digital transformation.