China Oil And Gas Group (603) H2 2024 earnings summary

Executive summary

• Revenue declined 4.7% year-over-year to HK$17,655 million, but gross profit rose 10.8% to HK$2,184 million, with gross margin improving to 12.4% from 10.6%.

• Net profit attributable to owners was HK$181 million, reversing a loss of HK$232 million last year; total comprehensive income reached HK$160 million.

• Operating profit increased 29.8% to HK$1,356 million, aided by lower administrative expenses and improved operational efficiency.

• No final dividend was proposed for 2024.

Financial highlights

• Revenue: HK$17,655 million (down 4.7% year-over-year); gross profit: HK$2,184 million (up 10.8%).

• Net profit: HK$701 million (up from HK$380 million); profit attributable to owners: HK$181 million (from a loss of HK$232 million).

• Administrative expenses fell 21.3% to HK$554 million; finance costs rose slightly to HK$465 million.

• Net impairment losses: HK$211 million on financial/contract assets, HK$91 million on associates (one-off items).

• Cash and equivalents plus time deposits: HK$4,348 million; total indebtedness: HK$8,542 million.

Outlook and guidance

• Focus in 2025 on stabilizing growth, enhancing efficiency, expanding value-added services, and digital transformation.

• Plans to deepen intelligent gas infrastructure, optimize resource management, and strengthen asset and talent management.

• Emphasis on high-quality development, sustainable growth, and international expansion.