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ENN Energy, one of the largest private gas distributors in China, is slumping 15.6% in Hong Kong, after it reported its first-half revenue decline by 7.2% year over year to 54.1 billion yuan as domestic demand remained weak due to high gas procurement costs and a disappointing industrial recovery.
Total gas sales volumes fell by 6.9% to 12.2 billion cubic metres due to high gas prices and subdued domestic demand, owing to a gloomy macroeconomic picture, it said, adding that China’s domestic cost of imported gas remained high due to delayed adjustments in pricing in long-term supply agreements.
Industrial usage was a particular weak spot with the new installed daily capacity for industrial customers falling by 11.8% against last year, however, its construction and installation business was a bright spot, supporting the group’s gross profit margin rise by 1.4 percentage points on last year.
