Kunlun Energy Company (135) H2 2024 earnings summary

Executive summary

• Revenue increased 5.5% year-over-year to RMB 187.05 billion, with net profit up 4.9% to RMB 5.96 billion and core profit up 3.5% to RMB 6.36 billion.

• Retail gas sales volume rose 8.1% to 32.76 bcm, with 850,000 new users added, totaling 16.45 million users.

• Six-year CAGR in gas sales volume to industrial users reached 24.1%.

• EBITDA remained stable at RMB 17.64 billion, and basic EPS rose 4.9% to RMB 68.83 cent.

• Dividend payout increased, with total dividend per share up 11.3% to RMB 31.58 cent, and payout ratio at 43%.

Financial highlights

• Natural gas sales revenue grew 5.5% to RMB 152.09 billion; LPG sales declined 4.5% to RMB 25.60 billion.

• Profit before income tax was RMB 12.63 billion, up 0.3% year-over-year; operating cash flow reached RMB 12.59 billion.

• Core EPS reached RMB 73.44 cent, a historical high; basic EPS was RMB 68.83 cent.

• ROE increased 0.2 ppt to 9.2%; net profit ratio improved to 9.15%.

• Gearing ratio decreased to 21.5%; average finance cost dropped to 2.9%.

Outlook and guidance

• 2025 guidance: retail natural gas sales volume to grow 18%, 600-700k new users, LNG terminal utilization 85-90%, LNG plant processing volume up 7%, LPG sales 5.6 million tons, crude oil equity sales 8 million barrels.

• Focus on expanding natural gas consumption in transportation and new energy, aiming for 73%+ retail gas volume.

• Plans to accelerate green transformation, digitalisation, and intelligent management, with new projects and M&A targeted.

• Dividend payout ratio to gradually increase, targeting 45% by 2025.