ENN EC Expanded and Strengthened, with Strong Performance in H1
(August 30, 2018, Beijing) - According to the semi-annual report released on August 30 by ENN EC (SH.600803), its operating income in the first half of 2018 was RMB 6.645 billion, up 44% from the same period of 2017 and the net profit attributable to shareholders of listed companies was 706 million yuan, up 612% from the same period last year. In terms of the financial indicators, the Company’s basic earnings per share in the first half of the year reached 0.61 yuan/share, up 510% from the same period last year. Asset-liability ratio dropped from 72.62% at the end of last year to 60.61% at present, with more reasonable indicators and more stable operation of the Company.
In terms of the overseas natural gas industry chain, Santos, an overseas equity-holding enterprise, still achieved a turnaround in performance even though PNG LNG project with the optimal cash flow stopped for two months due to the earthquake. In the first half of 2018, the basic profit doubled to 217 million USD. Half-yearly EBITDAX (Earnings Before Interest, Taxes, Depreciation, Depletion, Amortization and Exploration Expenses) rose 23% to 883 million USD. Free cash flow rose 22% to 367 million USD. In the first half of the year, the production cost dropped 4% again to 7.79 USD/barrel. The efficiency of onshore drilling has been further improved, becoming Australia’s lowest-cost onshore operator. At the same time Santos acquired a 100% stake in Quadrant Energy for 2.15 billion USD. It is expected that this acquisition will enable Santos to further enhance its offshore operation capability and the status of Western Australian operators on the basis of its high - quality, low-cost and long-term conventional natural gas portfolio. Synergy will also bring about an annual value increase of 40 - 50 million USD. After the acquisition, Santos output increased by about 31% to 77.8 million barrels of oil equivalent, very close to the 84-million-ton capacity of Woodside, Australia’s largest oil and gas company On the disclosure day of the acquisition information, the shares of the greatly rose 11.3%, reaching a new high in recent years. At the same time, the board of directors decided to pay an interim dividend of 3.5 cents per share. This also indicates that Santos will achieve the target of debt reduction ahead of schedule. Its low cost and high cash flow business can support the start of further growth while still paying dividends to shareholders.
At home, ENN EC has given full play to its business advantages in the natural gas field and has continuously strengthened the layout of clean energy industry. LNG sales prices hit the same period in previous years due to a sharp increase in domestic downstream demand. Qinshui ENN EC achieved steady growth in sales revenue in the first half of the year while the volume and price rose. In the field of energy engineering, the Company vigorously develops traditional businesses such as natural gas storage and distribution stations and gas replacing coal to support the Company’s business development. At the same time, the management of the Project and service capability and level will be continuously improved to ensure the continuous expansion of market share. Through the construction of coal-based gas the Demonstration Project, accumulated and cultivated management experience of coal-based clean energy utilization projects, and laid a solid foundation for the future coal-based clean utilization market. In terms of the energy and chemical products and coal production, during the reporting period, ENN EC realized the full-load stable operation of all units, with production and sales exceeding the semi-annual strategic target set at the beginning of the year, and corresponding business profits increased compared with the same period last year.
Mr. Yu Jianchao, CEO of ENN EC, said: “In the first half of 2018, ENN EC has achieved strong growth in both overseas investment and domestic operation. The board of directors is pleased with the Company’s performance in the first half of 2018. At the same time, we are confident that we will grasp the development opportunities of clean energy market in the second half of the year, strengthen the strategic direction and create more value for shareholders.”