Xin Lang Cai Jing·2025-09-01 00:32Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, but demonstrated resilience in profitability despite falling oil prices [1][2]. Financial Performance - In the first half of 2025, the company achieved operating revenue of 207.6 billion yuan, a year-on-year decrease of 8.45% - The net profit attributable to shareholders was 69.5 billion yuan, down 12.79% year-on-year - The net profit excluding non-recurring items was 69.4 billion yuan, a decrease of 12% year-on-year - In Q2 2025, operating revenue was 100.8 billion yuan, a decline of 12.62% year-on-year, with net profit of 33 billion yuan, down 17.6% year-on-year [1]. Production and Pricing - The company's net oil and gas production reached a historical high of 384.6 million barrels of oil equivalent in the first half of 2025, an increase of 6.1% year-on-year - Domestic production was 266.5 million barrels of oil equivalent, up 7.6% year-on-year, driven by projects like "Deep Sea No. 1" Phase II - International production was 118.1 million barrels of oil equivalent, a rise of 2.8% year-on-year, mainly from projects in Brazil and Guyana - The average Brent crude oil price was $70.81 per barrel, down 15.09% year-on-year, while the company's realized oil price was $69.15 per barrel, a decrease of 13.91% [2]. Cost Management - The company has implemented cost control throughout exploration, development, and production processes, establishing a competitive cost advantage in the industry - The main cost per barrel of oil was $26.94, a decrease of 2.92% year-on-year, with other taxes (excluding income tax) down 10.98% due to falling international oil prices [3]. Future Outlook - The company anticipates that oil prices will stabilize at a mid-to-high level, with production targets for net oil and gas output set at 760-780 million, 780-800 million, and 810-830 million barrels of oil equivalent for 2025-2027, respectively - Expected year-on-year growth rates for these targets are 5.9%, 2.6%, and 3.8% [3]. Shareholder Returns - The company emphasizes shareholder returns, maintaining a dividend payout twice a year, with a total dividend of 1.40 HKD per share in 2024, representing a payout ratio of approximately 44.7% - For the first half of 2025, an interim dividend of 0.73 HKD per share is proposed, with a payout ratio of 45.5% - The company plans to repurchase shares worth 2-4 billion RMB within the next 12 months and expects EPS of 2.83, 2.93, and 2.98 yuan for 2025-2027, corresponding to PE ratios of 9.09X, 8.75X, and 8.61X [4].