Shenzhen Gas
Corporation Ltd. (SZ Gas) recently released its Q1 2025 earnings report,
showing natural gas sales volume reached 1.635 BCM, marking a 25.10% YoY
increase. The growth was led by a 180.88% surge in wholesale gas sales to 382 MCM,
while piped gas sales rose 7.00% to 1.253 BCM. Despite a 9.48% revenue growth
to RMB 7.513 billion, net profit attributable to shareholders fell 15.47% to
RMB 233 million, dragged down by declining margins in smart services and
integrated energy businesses.
Key Growth Drivers
1. Explosive Growth
in Wholesale Gas Business
The wholesale
segment’s 180.88% YoY surge was driven by optimized procurement strategies and
a 10-year natural gas supply agreement signed with CNPC in March 2024, securing
an annual supply of 969 MCM to stabilize sourcing costs.
2. Expanding Urban
Gas User Base
The company’s natural
gas user base grew to 8.41 million households by end-2024 (+10.22% YoY),
fueling a 6.86% rise in Q1 2025 city gas sales to 982 MCM.
3. Gas-Fired Power
Demand Recovery
Gas sales to power
plants increased 7.94% YoY to 272 MCM in Q1, reversing a 3.18% decline in 2024.
The commissioning of SZ Gas Thermal Power’s first 9F gas turbine unit (June
2024) and a second unit planned for July 2025 are expected to further boost
demand.
Looking back into 2024,
SZ Gas’s natural gas supply volume rose 5.06% to 6.576 BCM, with sales up 6.91%.