The Hong Kong and China Gas Company (3) H1 2025 earnings summary

Executive summary

• Navigated a challenging macro environment with tariff uncertainties, weak PMI, and property market downturn, but benefited from government stimulus, green energy initiatives, and tourism recovery.

• Maintained steady gas sales volumes in Hong Kong and Mainland China, with after-tax operating profit up 3% to HK$3,996 million and core operating profit up 4% year-over-year.

• Profit attributable to shareholders decreased 3% to HK$2,964 million, mainly due to non-operating losses and FX impacts.

• Interim dividend maintained at HK12 cents per share.

• Accelerated hydrogen and green methanol projects, expanded digital capabilities, and secured major strategic partnerships.

Financial highlights

• Revenue for H1 2025 was HK$27,514 million, flat year-over-year.

• Profit from operations rose 3% to HK$3,996 million; core operating profit (excluding FX) up 4%.

• Profit attributable to shareholders was HK$2,964 million, down 3% year-over-year.

• Basic EPS was 15.9 HK cents, down from 16.3 HK cents in H1 2024.

• Operating expenses decreased by 1% to HK$22,877 million.

Outlook and guidance

• 2025 guidance projects steady gas sales, customer growth, and increased PV grid connection; Hong Kong gas sales expected to remain flat in H2 2025.

• Mainland business to pursue asset-light model, focusing on operational optimization and technology.

• Growth businesses, especially renewable energy and green fuels, identified as key profit drivers.

• Malaysia biofuels plant to commence production before year-end; green methanol sales target set at 0.02 million tonnes.

• Electricity trading volume expected to rise 5% to 8.8 billion kWh.