On August 26, KUNLUN ENERGY (SEHK: 00135) successfully concluded its 2026 interim results presentation in Hong Kong. Chairman Liu Guohai led the management team at the meeting and delivered a keynote speech. The event drew 55 institutional investors and analysts participating both in person and virtually. In his address, Liu Guohai highlighted the company's operational performance and innovation milestones from the first half of 2026, while outlining strategic directions for future growth.

Chief Financial Officer Jin Guanghui provided a thorough review of the company's financial position, while Deputy General Manager Hao Mingjun detailed the interim operating results. The management team engaged in open dialogue with investors on key topics, including growth prospects for the natural gas business, new expansion drivers within the LNG industrial chain, synergies across diverse operations, and enhancing shareholder value. Non-executive Director Qi Zhenzhong attended the session, with Company Secretary Xie Mao serving as moderator.

This year, global energy supply chains have faced significant disruptions. Under pressure from elevated international gas prices, domestic natural gas demand has remained subdued, with China's apparent consumption falling 2.4% year-on-year to 206.85 billion cubic meters in the first half. City gas operators have generally felt the strain. In response to this challenging external environment, the company has adapted proactively, leveraging its integrated upstream-downstream advantages to capture opportunities in transportation energy substitution. LNG sales volumes and processing throughput grew against the broader trend, while LPG and crude oil segments achieved improved pricing efficiency, effectively offsetting weaker city gas demand. The company's core businesses demonstrated strong synergy, reinforcing its operational resilience.

During the reporting period, all four key segments—natural gas sales, LNG processing and storage, LPG sales, and exploration and production—remained profitable and mutually reinforcing. The company posted steady growth in overall profitability. Natural gas sales reached 30.16 billion cubic meters, up 3.6% year-on-year, generating revenue of RMB 100.04 billion, a 2.6% increase. Profit before income tax rose 0.7% to RMB 6.78 billion, while profit attributable to shareholders grew 4.6% to RMB 3.31 billion. Basic earnings per share increased 4.9% to RMB 38.3 cents. Net cash flow from operating activities surged 41.7% to RMB 6.21 billion, providing a solid foundation for the company's green transition, industrial upgrades, and sustained investor returns.

Natural Gas Sales: Expanding Markets, Optimizing Mix, Boosting Efficiency

In the first half, LNG sales volumes jumped 42.6% year-on-year, helping to mitigate weak gas demand from certain industrial sectors. Amid narrowing price spreads, the company refined its business structure and streamlined tariff pass-through mechanisms, with six city gas projects in Hubei, Hunan, and Yunnan implementing residential gas price adjustments. Balancing existing asset optimization with new market development, the company secured three new city gas projects, adding 54.6 million cubic meters of annual sales capacity. New industrial user initiatives in Sichuan and Liaoning are expected to come online in the second half. Customer acquisition progressed steadily, with 299,000 new users added, bringing the total to 17.49 million.

LNG Storage and Processing: Structural Refinements, Optimized Operations, Higher Utilization

The company advanced integrated coordination across LNG sales, storage, and processing, strengthening internal management, resource linkages, and downstream market development. External LNG sales scaled new heights, and proprietary processing plants operated at full capacity. Plants in Huanggang and Tai'an completed technical upgrades and maintenance, significantly enhancing long-term operational reliability. In the first half, 13 LNG plants processed 2.27 billion cubic meters of natural gas, up 29.7% year-on-year, with average utilization reaching 78.1%—the highest since operations began. Marine bunkering volumes hit a record 94,000 tonnes, up 26.0% year-on-year. Gasification and loading volumes at the Jiangsu and Jingtang LNG terminals reached 7.21 billion cubic meters, down 8.7%, primarily due to temporary imbalances in long-term contract and spot LNG arrivals amid Middle East geopolitical disruptions.

LPG Sales: Sourcing Resources, Expanding Direct Supply, Widening Margins

Leveraging stable resources from its parent company, the company mitigated the impact of reduced overseas supply caused by Middle East tensions. Procurement from oil and gas fields increased by 89,000 tonnes, or 21%, year-on-year. Through astute market analysis, the company capitalized on upward price windows to boost sales, achieving a significant year-on-year expansion in comprehensive purchase-sale price spreads. Cross-regional resource allocation was further optimized, and five new industrial direct-supply customers were added, driving volumes up by 213,000 tonnes. Terminal sales increased by 129,000 tonnes, raising their share by 8.7 percentage points and improving the overall LPG sales mix.

Exploration and Production: Stabilizing Output, Controlling Costs, Enhancing Returns

In the first half, the company's upstream projects in Oman, Kazakhstan, and Thailand operated smoothly, with overall asset financial health continuing to improve. Equity crude oil sales totaled 4.043 million barrels, down 1.9% year-on-year, but the average external selling price rose from $62.9 per barrel to $71.6 per barrel, benefiting from higher international crude prices. Looking ahead, the company remains committed to a long-term vision, building resilience and striving to become a responsible, high-quality, and respected energy enterprise. It will adapt to evolving conditions, strengthen strategic foresight, and seize opportunities amid structural shifts. By enhancing professional management, advancing reforms, and fostering innovation, the company will solidify its integrated natural gas industrial chain advantages, accelerate the development of a green integrated energy supply system, and aim for a strong start under the 15th Five-Year Plan.