Higher sales after gas price-cut boost ENN Energy’s interim profit
The Hebei province based natural gas distributor beats estimates with a 19 per cent increase in first-half profit
Net profit for the first six months came to 1.59 billion yuan, or 1.3 yuan a share when accounting for the dilution impact of new shares issuance, up from 1.23 billion yuan and 1.13 yuan a share in the same period last year.
Excluding non-operating items such as accounting gains and losses arising from bonds convertible to shares, and foreign exchange fluctuations, ENN reported underlying recurring profit of 1.65 billion yuan, up 19 per cent from 1.39 billion yuan in the year-earlier period.
The figure was 2.5 per cent ahead of the 1.61 billion yuan average estimate by analysts at Citi, Deutsche Bank and Morgan Stanley.
No interim dividend was declared by the Langfang, Hebei province-based company controlled by mainland businessman Wang Yusuo, the same as last year.
The Group will continue to develop wholesale gas business and accelerate value-added businesses to diversify its revenue streams
“On the back of its scalable logistics fleet resources and the capabilities of upstream [gas] resources procurement and downstream market [development], the Group will continue to develop wholesale gas business and accelerate value-added businesses to diversify its revenue streams,” ENN said in a filing to Hong Kong’s bourse after the market closed. The diversification includes electricity retailing.