ENN EC Third Quarter Profit Increases 97%, Performance Exceeds Expectation Again
(Beijing, October 30, 2017) - ENN EC (SH. 600803) disclosed its third quarterly report, which showed that the Company realized 7.012 billion yuan in operating income during the same period, up 75.4% year on year. The net profit attributable to shareholders of listed companies was 384 million yuan, up 97% year-on-year, and the results were significantly higher than expected.
the Company concluded that due to the growth of all businesses, its operating income performed well, while Xinneng Mining, Xindi Project, Xinneng Energy, Pesticide Company and Qinshui ENN EC had outstanding profit performance, which not only offset the book pressure caused by the financial impairment of Santos in the middle of the year, but also achieved nearly 100% growth of the Company’s overall profit.
Under the background of long-term gradual recovery of oil prices and the explosion of consumption growth in the whole industry, many institutions such as Haitong Securities, Shen Wanhongyuan and Guojun Petrochemical all gave positive comments on ENN EC, such as “buying” and “increasing”.
In addition, on October 19, Santos, the Company’s important joint venture in Australia, disclosed the third quarter operating activity report. After Santos completed the financial impairment treatment of hundreds of millions of dollars in the middle of the year, the net profit for this quarter was estimated to be 40.3 million dollars, the net debt decreased by 700 million dollars, the break-even point was stable at the average price of 33 dollars per barrel (47 dollars in early 2016), the rising oil price will greatly enhance the Company’s value and the safety margin will be more protected. The board of directors announced a simultaneous increase in the annual target output and sales volume, showing the managements confidence in the annual performance and management ability.
It is understood that while introducing strategic investors Hongyi investment and actively promoting major strategic measures such as secondary market allotment of shares, in 2017, ENN EC’s competitive position in the upper reaches of natural gas energy will be fully enhanced through the overall consolidation of its operating foundation and the strengthening of its operating efficiency, and through the further strengthening of its influence on Santos, a joint venture, and the prospect of transformation and upgrading in the future will be promising.