Zitong Financial App News, Kunlun Energy (00135) announced the 2017 results, achieving an income of about 88.706 billion yuan (the same unit below), an increase of 26% over the same period last year; the profit attributable to shareholders of the company was 4.76 billion yuan, up 614.71% from the same period last year; the core profit attributable to shareholders of the company was 5.522 billion yuan, up 43.17% from the same period last year; basic earnings per share were 58.97 points, and the proposed final dividend per share was 21 cents.

During the period, exploration and production operations sold 13.06 million barrels of crude oil, down 14.19 percent from the same period last year; revenue was 1.505 billion yuan, an increase of 0.94 percent over the same period last year; excluding the impact of the company's withdrawal from contracts in Xinjiang in August 2016, crude oil sales decreased by 390000 barrels compared with the same period last year; the average sales price of crude oil this year was US $46.63 ╱ barrels, an increase of 34.54 percent over the same period last year. The profit before income tax expenses was 820 million yuan, an increase of 6733.33% over the same period last year.

In 2017, natural gas sales reached 18.772 billion cubic meters, an increase of 23.59 percent over the same period last year, and revenue reached 72.109 billion yuan, an increase of 32.11 percent over the same period last year. Due to the increase in the scale of sales, raw material gas procurement and production costs, sales and management expenses and labor costs increased, coupled with impairment losses on property, plant and equipment, and impairment losses on accounts receivable and other receivables, the profit before income tax expenses was 2.11 billion yuan, a decrease of 17.51% compared with the same period last year. If the impairment loss of property, plant and equipment excluding natural gas sales assets is 275 million yuan, and the impairment loss of accounts receivable and other receivables is 184 million yuan, the core profit of this business sector, excluding income tax charges, is 2.569 billion yuan, a decrease of 0.43% compared with the same period last year.

The announcement said that during the year, the group vigorously promoted urban gas and urban coal to gas, industrial fuel gas instead of coal, gas instead of oil and other projects. A total of 110 terminal utilization projects were developed, and 429000 new users from coal to gas were added in rural areas. Urban gas sales were 11.825 billion cubic meters, an increase of 28.18 percent over the same period last year. The average monthly sales of natural gas in Hebei and Jiangsu provinces are more than 2 billion cubic meters, and those in Shandong, Xinjiang and Gansu provinces are more than 1 billion cubic meters. CNG and LNG terminals try their best to reduce the cost increment. With the in-depth implementation of tapping potential and increasing efficiency, the declining trend of CNG sales has been curbed, and LNG sales have increased significantly compared with last year. The development of gas, electricity and distributed energy business has achieved fruitful results. 25 project cooperation agreements were signed throughout the year, Zengcheng Power Plant started, and the construction of Zhoukou Power Plant is progressing smoothly. The operating power plant generates 6.06 billion kilowatt hours of electricity for the whole year, an increase of 18 per cent in heat supply and 4 per cent in gas consumption over the same period last year. LPG sales highlight the key links such as increasing resources, strong terminals, excellent flow, and reducing costs. The annual sales volume is 6.5798 million tons, and the sales scale and operating efficiency are the best in recent years.

During the period, the group realized 15.995 billion cubic meters of LNG processing, storage and transportation sales, an increase of 101.75% over the same period last year, and revenue of 6.869 billion yuan, an increase of 110.51% over the same period last year. The profit before income tax expenses in this business segment was 1.946 billion yuan, an increase of 155.78% over the same period last year.

The gas transmission volume of natural gas pipeline business was 41.689 billion cubic meters, an increase of 16.67% over the same period last year. Affected by the price reduction of natural gas inter-provincial pipeline transportation implemented on September 1, 2017, the company's revenue from pipeline transportation business was 10.755 billion yuan, down 7.94 percent from the same period last year, and its profit before income tax expenses was 6.733 billion yuan, 16.31 percent lower than that of the same period last year.

The increase in revenue is mainly due to the expansion of the natural gas business, the announcement said.