Kunlun Energy Company (135) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2026 rose 2.56% year-over-year to RMB 100,042 million, driven by higher natural gas and LNG processing volumes.

• Profit attributable to shareholders increased 4.59% year-over-year to RMB 3,306 million, with basic EPS up 4.93% to RMB 38.31 cents.

• Maintained robust cash flow, with free cash flow at RMB 5.15 billion and operating cash flow up 41.66% to RMB 6,213 million, supporting green transition and investor returns.

• All four business segments delivered profitability, with LNG and exploration/production offsetting weaker city gas demand.

• Continued expansion in city gas projects, user base, and new energy initiatives, supporting long-term growth.

Financial highlights

• EBITDA was RMB 9,478 million, nearly flat year-over-year.

• Profit before income tax was RMB 6,782 million, up 0.67% year-over-year; profit after tax up 0.8% to RMB 5,044 million.

• Interim dividend declared at RMB 19.16 cents per share, up 15.42% year-over-year, totaling RMB 1,652 million.

• Gearing ratio improved to 18.5%; total assets at RMB 145.6 billion.

• Free cash flow reached RMB 5.15 billion.

Outlook and guidance

• Plans to strengthen core end-user gas business, target high-value industrial clients, and maintain stable dollar margins.

• Aims to unlock full-chain LNG value, advance green low-carbon transition, and expand digital-intelligent technologies.

• 2026 guidance: flat retail gas sales, 600-700k new users, 80% LNG terminal utilization, 13% increase in LNG plant processing, 5.8 million tons LPG sales, 8 million barrels crude oil sales.

• The company expects a complex external environment in H2 2026, with ongoing geopolitical and supply chain risks.

• Policy support for natural gas and LPG as clean energy is expected to unlock new demand, especially in industrial and heating sectors.