Ge Long Hui·2025-08-30 03:54Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, but demonstrated resilience through its integrated business model, which helped mitigate the impact of falling oil prices [1][9]. Financial Performance - In H1 2025, the company achieved total revenue of 1,450.1 billion yuan, a year-on-year decrease of 6.7% (restated), and a net profit attributable to shareholders of 84 billion yuan, down 5.4% (restated) [1]. - For Q2 2025, the company reported revenue of 697 billion yuan, a year-on-year decline of 6.1% (restated) and a quarter-on-quarter decrease of 7.5%, with a net profit of 37.2 billion yuan, down 13.6% (restated) year-on-year and 20.6% quarter-on-quarter [1]. - The company’s operating cash flow improved to 227.1 billion yuan in H1 2025, reflecting a year-on-year increase of 4.0% (restated) [1]. Segment Performance - The upstream oil and gas segment generated an operating profit of 85.7 billion yuan in H1 2025, down 6.5% year-on-year, with Q2 profit at 39.6 billion yuan, a decline of 18.5% year-on-year and 14.1% quarter-on-quarter [2]. - The refining segment faced challenges with an operating profit of 11.1 billion yuan, down 18.9% year-on-year, primarily due to decreased demand for refined products and inventory losses from falling oil prices [2][4]. - The natural gas sales segment performed well, achieving an operating profit of 18.6 billion yuan, up 10.8% year-on-year, benefiting from increased sales volume and improved profitability across the value chain [2][4]. Strategic Developments - The company announced plans to acquire 100% equity in three gas storage companies, enhancing its natural gas value chain and increasing storage capacity by 10.97 billion cubic meters [8]. - The acquisition is expected to positively impact the company's financial performance, with the three gas storage companies projected to generate a combined net profit of 1.9 billion yuan in 2024 [8]. Long-term Outlook - The company plans to maintain high capital expenditures, with a budget of 210 billion yuan for upstream investments in 2025, aiming for a 1.6% increase in oil and gas equivalent production [9]. - The company is focused on transitioning its refining and chemical businesses while enhancing its natural gas operations, positioning itself for long-term growth despite external uncertainties [9].