Kunlun Energy Company (135) H2 2025 earnings summary

Executive summary

• Revenue rose 3.7% year-over-year to RMB193.98 billion, driven by higher natural gas sales volumes, especially to industrial users and through distribution and trading channels.

• Profit before tax fell 7.7% to RMB11.66 billion, and profit attributable to shareholders declined 10.3% to RMB5.35 billion, mainly due to asset impairments and higher resource costs.

• Core profit attributable to shareholders, excluding one-off items, was RMB5.92 billion, down 6.9% year-over-year.

• Operating cash flow reached RMB12.43 billion, supporting future transformation and shareholder returns.

Financial highlights

• EBITDA decreased 4.3% to RMB16.89 billion year-over-year.

• Basic earnings per share dropped to RMB61.74 cents from RMB68.83 cents, while core basic EPS was RMB68.40 cents.

• Interim and proposed final dividends totaled RMB31.58 cents per share, with a payout ratio of 46.17% of core basic EPS.

• Gearing ratio improved to 18.8% from 21.5% as total borrowings decreased.

Outlook and guidance

• The company expects continued growth in domestic natural gas consumption, with a projected average annual increase of about 5% during the "15th Five-Year Plan" period.

• Strategic focus will be on green, integrated energy supply, digital transformation, and expanding new energy and gas power businesses.

• Dividend and share repurchase plans for 2026–2028 are in place to enhance shareholder value.