Zhongman Petroleum and Natural Gas Group (603619) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was RMB 771.44 million, down 18.22% year-over-year due to lower crude oil sales and increased transportation costs for unsold crude oil.

• Net profit attributable to shareholders dropped 86.22% year-over-year to RMB 31.66 million.

• Operating cash flow turned negative at -RMB 64.04 million, compared to RMB 214.53 million in Q1 2025.

• Crude oil and derivatives sales volume fell 19.48% year-over-year, with significant declines at the Wensu oilfield.

• International oil prices spiked in March due to Middle East geopolitical tensions, but domestic demand remained weak.

Financial highlights

• Total assets increased 4.22% from year-end 2025 to RMB 13.03 billion.

• Shareholders’ equity rose 1.10% to RMB 4.37 billion.

• Basic and diluted EPS were RMB 0.07, down 86% year-over-year.

• Weighted average ROE was 0.73%, down 4.83 percentage points year-over-year.

• Gross margin declined as operating costs remained high despite lower sales.

Outlook and guidance

• Project progress in Iraq was impacted by client-mandated work stoppages.

• The company will monitor geopolitical risks and take measures to mitigate adverse impacts.