Changfeng Energy announces 2018 interim results

Financial highlights

• Revenue increased by 20% to RMB 204.9 million compared to 1H 2017: RMB 170.2 million.
• Gross profit grew by 14% to RMB 89.2 million compared to 1H 2017: RMB 78.3 million.
• Profit attributable to shareholders from continuing operations increased by 73% to RMB 34.4 million compared to 1H 2017: RMB19.8 million.
• Total gas volume sold up by 19%.
• Basic earnings per share from continuing operations was RMB 0.53 compared to1H 2017: RMB 0.30.

For 1H 2018, the company recorded total revenue of RMB 204.9 million compared to1H 2017: RMB 170.2 million, up by 20% year-on-year (yoy). Of the total revenue, gas distribution utility and CNG vehicle refueling contributed RMB 176.3 million and RMB 28.6 million respectively. Gross profit rose by 14% to RMB 89.2 million compared 1H 2017: RMB 78.3 million. EBITDA from continuing operations was RMB 32.2 million compared to 1H 2017: RMB 28.0 million. Profit attributable to shareholders from continuing operations was RMB 34.4 million compared to 1H 2017: RMB 19.8 million, increased by 73% yoy, due to increase in profit from continuing operations and fair value change of RMB 14.5 million on put option arising from the disposal of our controlling interest in a subsidiary. Basic earnings per share from continuing operations amounted to RMB 0.53 compared to 1H 2017: RMB0.30.

This is the second year of Changfeng’s three-year plan to strategically shift its corporate focus to sustainable energy in combination with natural gas to become an integrated energy provider in the PRC. During the reported period, total gas sales volume rose by 19% to 29.5 million m3, mainly contributed by Sanya and the commencement of gas sales in Hebei region in 2Q 2018. Increase in gas price continued since May 2017.

CEO’s comments:

Huajun Lin, Chairman, President and CEO of Changfeng, said: “We are pleased to have delivered satisfactory results with growing revenue and improved profitability. We expect the volume of gas sold during the rest of the year to increase with our existing pipeline networks in the Sanya Region continuing to add both residential and commercial and industrial customers to its network, the industrial customers in Hebei Province, and the successful procurement of the two new LNG supply customers in Wenchang City, Hainan Province this month, which marked Changfeng’s first step into extending its natural gas distribution business outside of Sanya City on the Hainan Island.

We will continue to put great effort in the preparation of the HK IPO as to meet the target of successful listing on the HKEX within [1H 2019], which will serve to broaden Changfeng’s investor base, increase stock liquidity, and allow the company to gain access to and recognition of strategic investors in the Chinese market.”

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/30082018/changfeng-energy-announces-2018-interim-results/