The Hong Kong and China Gas Company (3) H2 2024 earnings summary

Executive summary

• Revenue declined 3% year-over-year to HK$55.5 billion, while profit from operations rose 5% to HK$7.5 billion.

• Net profit attributable to shareholders fell 6% to HK$5.7 billion; basic EPS decreased to 30.6 HK cents.

• Core utility business remained robust, with strong growth in renewable and green energy segments, positioning for future expansion.

• Renewable energy business profit surged over fivefold, with grid-connected PV capacity reaching 2.3GW.

• Management advanced restructuring, cost control, and operational efficiency, supporting profit growth in Hong Kong and mainland operations.

Financial highlights

• Revenue: HK$55.5 billion (-3% YoY); profit from operations: HK$7.5 billion (+5% YoY).

• Core operating profit: HK$6.0 billion (+5% YoY); net profit: HK$5.7 billion (-6% YoY).

• Net gearing ratio increased to 43% from 41%; total assets at HK$158.3 billion.

• Capital expenditure reduced to HK$6.0 billion from HK$10.2 billion.

• Final dividend proposed at HK23 cents per share; total annual dividend HK35 cents per share.

Outlook and guidance

• 2025 guidance: Hong Kong gas sales volume stable at 27,200 TJ; Mainland gas sales to rise to 38.0 billion m³.

• Renewable energy PV generation volume targeted to grow 40% to 2.58 billion kWh.

• Focus on expanding energy storage, EaaS, and green energy projects, including new green methanol and hydrogen initiatives.

• Two new gas wells to commence in 2025, increasing storage capacity and supporting national pipeline networks.

• Dollar margin in Mainland gas business expected to improve to RMB0.54/m³.