2021-08-26 16:00Financial Performance - Operating revenue rose by 28.8% to RMB 1,196,581 million compared to the same period last year[9]. - Net profit attributable to shareholders of the parent company reached RMB 53,037 million, a significant increase from a loss of RMB 29,983 million in the previous year[9]. - Basic earnings per share improved to RMB 0.290 from a loss of RMB 0.164 in the previous year[9]. - The company reported a total non-recurring gains of RMB 7,805 million for the period[10]. - The company's operating profit for the first half of 2021 reached RMB 308.70 billion, an increase of RMB 205.19 billion compared to the same period last year[48]. - The total profit for the period was RMB 87,015 million, a substantial increase from a loss of RMB 18,523 million in the previous year, highlighting strong financial recovery[144]. - The total comprehensive income for the period was RMB 64,634 million, compared to RMB 23,760 million in the same period last year, indicating overall financial growth[144]. - EBITDA increased by 85.6% year-on-year to RMB 205,564 million, driven by significant sales revenue growth[138]. Cash Flow and Assets - Net cash flow from operating activities increased by 46.7% to RMB 116,034 million compared to the same period last year[9]. - The cash and cash equivalents balance at the end of the period was RMB 154,394 million, up from RMB 90,335 million[137]. - Cash flow generated from financing activities decreased by RMB 39.2 billion, down 113.2% year-on-year, mainly due to a reduction in borrowings by RMB 146.2 billion[138]. - The company's total assets increased to RMB 2,532,124 million from RMB 2,488,400 million[141]. - The company's total liabilities rose to RMB 1,139,209 million from RMB 1,121,515 million, reflecting a stable financial position[141]. Shareholder Information - The company plans to distribute an interim dividend of RMB 0.13040 per share, totaling RMB 238.66 billion based on the total share capital as of June 30, 2021[3]. - As of June 30, 2021, the total number of shareholders is 631,882, including 625,759 domestic A-share shareholders and 6,123 overseas H-share shareholders[13]. - The largest shareholder, China National Petroleum Corporation, holds 146,882,339,136 shares, representing 80.25% of the total shares[14]. - The company has established a cash dividend policy, committing to distribute at least 30% of the net profit attributable to the parent company as dividends, with a current payout ratio of 45%[77]. Production and Sales - In the first half of 2021, the company's domestic crude oil production reached 374.9 million barrels, a year-on-year increase of 0.6%[28]. - The company's total oil and gas equivalent production was 819.6 million barrels, a decrease of 1.7% year-on-year[30]. - Domestic natural gas consumption was 1,827 billion cubic meters, representing a growth of 17.4% year-on-year[27]. - Total sales volume of gasoline, kerosene, and diesel reached 80.339 million tons, a year-on-year increase of 4.9%[37]. - Natural gas sales reached 134.079 billion cubic meters, a growth of 11.9% year-on-year, with domestic sales increasing by 17.6%[40]. Capital Expenditures and Investments - Capital expenditures for the first half of 2021 amounted to RMB 73.883 billion, a decrease of 1.2% compared to the same period last year, with a full-year forecast of RMB 239 billion[62]. - The exploration and production segment's capital expenditures for the first half of 2021 were RMB 54.078 billion, with an expected full-year total of RMB 175.2 billion[63]. - The company completed the equity transfer of Kunlun Energy pipeline assets during the first half of 2021[40]. - The company participated in establishing Kunlun Capital with investments of RMB 29 billion, RMB 51 billion, and RMB 20 billion from China National Petroleum Corporation and its capital subsidiary[88]. Market and Strategic Focus - The company continues to focus on expanding its oil and gas exploration and production capabilities to enhance market presence[4]. - The company anticipates continued growth in natural gas demand, despite increased competition in the market, and plans to focus on innovation and green development strategies[71]. - The company aims to achieve strategic discoveries and breakthroughs in exploration, focusing on key areas such as the Sichuan Basin and Tarim Basin, with a goal of maintaining reserve replacement targets[72]. - The company is committed to optimizing its asset structure and strategic layout by focusing on effective exploration and development in international projects, particularly in Chad and the Congo Basin[74]. Environmental and Social Responsibility - The company reported a commitment to environmental responsibility, implementing measures to reduce emissions and promote clean production, with no significant environmental pollution incidents during the reporting period[109]. - The company is actively pursuing carbon neutrality goals, including the development of CO2 recovery and utilization technologies, and plans for renewable energy projects[110]. - The company has upgraded its health, safety, and environmental committee to a sustainable development committee, expanding its responsibilities to include ESG matters[75]. Risks and Challenges - The company is facing risks related to industry regulation and tax policies, which could impact its operational activities and financial performance[114]. - The company faces risks from fluctuations in oil and gas product prices, which are influenced by global political and economic changes, supply and demand conditions, and international events[115]. - The oil industry is increasingly challenged by climate change, with potential legal and regulatory impacts that could lead to higher capital and operational costs[120]. Governance and Compliance - The company has a total of 7 independent directors and 8 supervisors, ensuring a robust governance structure[129][130]. - All directors and supervisors confirmed compliance with the trading standards set forth in the Listing Rules during the reporting period[101]. - The audit committee reviewed and confirmed the interim performance for the six months ending June 30, 2021[103].