Kunlun Energy Company (135) H1 2026 earnings summary

Executive summary

• Revenue rose 2.56% year-over-year to RMB100,042 million, driven by higher natural gas and LNG processing volumes.

• Profit attributable to shareholders increased 4.59% to RMB3,306 million; basic EPS up 4.93% to RMB38.31 cents.

• Operating cash flow surged 41.66% to RMB6,213 million, supporting green transition and investor returns.

• All four business segments remained profitable, 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

• Natural gas sales volume reached 30.156 bcm, up 3.65% year-over-year; retail gas sales fell 1.71%.

• LNG sales volume soared 42.6% year-over-year; LNG plant processing volume up 29.74% to 2.273 bcm.

• LPG sales volume dropped 10.65% to 2.7415 million tonnes, but segment profit before tax rose 20.40%.

• Exploration and production: crude oil sales volume 4.043 million barrels (down 1.94%), but profit before tax up 442.62% to RMB331 million.

• EBITDA was RMB9,478 million, nearly flat year-over-year.

Outlook and guidance

• 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.

• Focus on expanding city gas, LNG, and new energy projects, with digital and AI-driven operational enhancements.

• 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.

• Confident in achieving annual performance targets and future growth.