2019-09-09 08:34Financial Performance - In the first half of 2019, the company achieved a net profit of RMB 30.25 billion, a year-on-year increase of 18.7% from RMB 25.48 billion[9]. - Total oil and gas sales revenue reached RMB 94.28 billion, up 4.4% from RMB 90.31 billion in the same period last year[9]. - The operating profit for the first half of 2019 was RMB 43.310 billion, compared to RMB 41.238 billion in the same period of 2018[20]. - The profit for the six months ended June 30, 2019, was RMB 30,253 million, compared to RMB 25,477 million for the same period in 2018, representing an increase of approximately 18.5%[70]. - Total revenue for the six months ended June 30, 2019, was RMB 108,880 million, compared to RMB 105,649 million for the same period in 2018, indicating a year-over-year increase of about 2.1%[63]. - The profit from the exploration and production segment for the six months ended June 30, 2019, was RMB 29,817 million, up from RMB 25,477 million in the same period of 2018, reflecting a growth of approximately 17.5%[63]. - The company's total liabilities as of June 30, 2019, were RMB 289,673 million, compared to RMB 261,414 million as of June 30, 2018, indicating an increase of about 10.8%[64]. Production and Exploration - The company's net production reached 243.0 million barrels of oil equivalent, a 2.1% increase compared to 238.1 million barrels in the first half of 2018[9]. - The company's net production for the first half of 2019 was 243.0 million barrels of oil equivalent, with a year-on-year increase of 2.1% in China's offshore production and 2.0% in overseas production[14]. - The contribution from the newly launched Egina oil field significantly boosted overseas production[14]. - The company made 16 new discoveries and successfully evaluated 35 wells during the first half of the year, with significant contributions from the Bohai Sea and Guyana[12]. - The company plans to continue strengthening its exploration efforts, particularly in mature and new areas, with a 72% increase in self-operated exploration wells in domestic waters[12]. Capital Expenditures and Investments - Capital expenditures for the first half of 2019 amounted to RMB 33.7 billion, representing a 60.5% increase year-on-year, with exploration investment rising by 109.8% to RMB 8.6 billion[18]. - The total exploration expenses increased by 176.0% to RMB 6.238 billion compared to RMB 2.260 billion in the same period last year[19]. - The group invested approximately RMB 32,353 million in property, plant, and equipment for the six months ended June 30, 2019, compared to RMB 21,077 million in the same period of 2018, indicating a year-on-year increase of 53.3%[72]. - The company signed an agreement to acquire 100% of Zhonglian Company, which will enhance its capabilities in oil and gas extraction technology and management[6]. - The company completed the acquisition of a 10% stake in Arctic LNG 2 LLC from Ekropromstroy on July 19, 2019[60]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.33 per share, up from HKD 0.30 in the previous year[9]. - The interim dividend declared on August 29, 2019, was HKD 0.33 per share, an increase from HKD 0.30 per share in 2018, totaling approximately HKD 14,734 million (RMB 12,961 million) for 2019[71]. - The basic and diluted earnings per share for the period were RMB 0.68, up from RMB 0.57 in the previous year[21]. Financial Position and Assets - The total non-current assets as of June 30, 2019, amounted to RMB 496,666 million, an increase from RMB 488,697 million as of December 31, 2018[22]. - The company's total assets minus current liabilities stood at RMB 619,301 million as of June 30, 2019, compared to RMB 608,537 million at the end of 2018[23]. - The company reported a total asset value of RMB 720,539 million as of June 30, 2019, compared to RMB 678,779 million as of June 30, 2018, marking an increase of about 6.1%[64]. - The total current assets increased to RMB 223,873 million as of June 30, 2019, from RMB 190,082 million at the end of 2018, reflecting a growth of 17.8%[22]. Accounting and Financial Reporting - The financial statements for the six months ended June 30, 2019, were prepared in accordance with International Accounting Standard 34 and relevant Hong Kong regulations[35]. - The company adopted a modified retrospective approach for the first-time application of IFRS 16, without restating comparative information[46]. - The company recognized lease liabilities amounting to RMB 8,373 million as of January 1, 2019, in accordance with IFRS 16[48]. - The company has not identified any significant impact from the newly adopted accounting standards on the amounts recognized in the interim financial statements[37]. - The company’s financial statements as of June 30, 2019, reflect the cumulative effects of the new accounting policies implemented[58]. Corporate Governance and Compliance - The company has complied with the corporate governance code except for a deviation from the code provision A.4.1 regarding the appointment of non-executive directors, which do not have a specified term[136]. - The audit committee reviewed the interim results for the six months ended June 30, 2019, which were unaudited[133]. - The company has adopted a code of ethics for directors and senior management, confirming adherence to the required standards during the six months ending June 30, 2019[137]. Strategic Initiatives and Future Outlook - The company is focusing on sustainability initiatives, with a target to reduce carbon emissions by G% by 2025[147]. - A new strategic partnership has been formed to enhance research and development capabilities, expected to yield innovative solutions in the energy sector[147]. - The company is closely monitoring geopolitical risks that may impact operations, with contingency plans in place to mitigate potential disruptions[147]. - The company provided a positive outlook for the next quarter, projecting a revenue increase of B% based on anticipated market conditions and production levels[147].