Kunlun Energy reported a solid first half for 2026, with profit attributable to shareholders rising 4.59% year on year to RMB 3.31 billion, buoyed by stronger LNG performance and a jump in exploration profits despite muted domestic gas demand and lower LPG volumes.
Revenue edged up 2.56% to RMB 100.04 billion. Core operating cash flow expanded 41.66% to RMB 6.21 billion, lifting the group’s liquidity and keeping net gearing modest at 18.5% (31 December 2025: 18.8%).
Segment performance:
• Natural Gas Sales: Revenue grew 3.25% to RMB 82.68 billion on a 3.65% volume increase to 30.16 billion cubic metres, but pre-tax profit slipped 5.58% to RMB 4.23 billion as retail spreads narrowed.
• LNG Processing & Terminal: Revenue climbed 11.48% to RMB 4.87 billion. Total LNG processed, gasified and truck-loaded reached 9.48 billion cubic metres, with plant utilisation at 78.1%. Pre-tax profit eased 3.87% to RMB 1.77 billion after lower terminal throughput.
• LPG Sales: Sales volume contracted 10.65% to 2.74 million tonnes; revenue fell 4.79% to RMB 12.40 billion. Efficiency gains widened spreads, lifting segment pre-tax profit 20.40% to RMB 655 million.
• Exploration & Production: Equity crude sales were broadly flat at 4.04 million barrels, but a higher average realised price of USD 71.60 per barrel (1H25: USD 62.90) propelled segment pre-tax profit to RMB 331 million, a 4.4-fold increase.
Earnings per share improved 4.93% to RMB 0.3831. The board declared an interim dividend of RMB 0.1916 per share (HKD 0.2207), up from RMB 0.1660 a year earlier, totalling approximately RMB 1.65 billion and payable on 26 November 2026, with an election for RMB or HKD currency.
During the period the company repurchased 29.02 million shares for HKD 206.83 million; 21.09 million shares were cancelled by 25 June, with 7.94 million pending cancellation. No major acquisitions or disposals were recorded.
Management highlighted ongoing investment in gas-fired power and new energy projects, AI-driven operational upgrades, and continued focus on integrated LNG value-chain optimisation. The board reiterated confidence in meeting full-year guidance under supportive domestic policies and steady cash generation.