CK Infrastructure (1038) H1 2024 earnings summary

Executive summary

• Profit attributable to shareholders rose 2% year-over-year to HK$4,311 million in H1 2024, with earnings per share at HK$1.71 and interim dividend up 1.4% to HK$0.72 per share.

• Stable performance supported by strong UK and Australia portfolio growth, offsetting declines in Canada.

• Completed two UK acquisitions, including Phoenix Energy and a portfolio of onshore wind farms, strengthening the renewable energy portfolio and recurring cash flows.

• Continued 27-year record of dividend growth.

Financial highlights

• Turnover for the period was HK$19,090 million, down from HK$19,534 million year-over-year.

• Net debt to net total capital ratio increased to 9.8% from 7.7% at year-end 2023, mainly due to the Phoenix Energy acquisition.

• Cash and bank deposits on hand at HK$9,180 million as of 30 June 2024.

• Funds from operations decreased 17% year-over-year to HK$3,333 million.

• S&P credit rating maintained at A/Stable.

Outlook and guidance

• Market uncertainties persist due to high interest rates and geopolitical tensions, but recurring income and cash flow remain strong.

• Positioned to pursue new acquisitions with solid financials and strategic partners.

• Focus on organic growth, portfolio diversification, and fiscal responsibility.

• Regulatory resets scheduled across UK and Australian utility assets through 2028.

• Continued focus on decarbonization and net zero targets, with a 50% reduction in Scope 1 and 2 emissions targeted by 2035.