Power Assets profit jumps on UK asset disposals
AM730 · 2 SOURCESabout 1 hour ago2 MIN
Summary
Power Assets Holdings posted unaudited first-half profit of HK$14.74 billion, up about 3.8 times from a year earlier, mainly driven by gains from the disposal of its interests in UK Power Networks and UK Rails. The company maintained its interim dividend at HK$0.78 per share, while revenue fell 15.34% year on year to HK$298 million.
Key Points
- For the six months ended June 30, Power Assets reported unaudited profit of HK$14.74 billion and earnings per share of HK$6.90.
- The group said the UK disposals generated substantial accounting and cash proceeds, including a one-off gain attributable from UK Power Networks of HK$11.286 billion
- Its UK operations contributed HK$13.126 billion in profit, surging 661% year on year, helped by the asset sales and solid underlying operating performance.
- Australia contributed HK$737 million in profit, up 13% on better business performance and more favourable exchange rates, while Canada was stable and Hongkong Electric contributed HK$335 million.
- Net cash stood at HK$42.55 billion at the end of June, which chairman Andrew Hunter said gives the group strength to face uncertainty and pursue quality acquisitions.
Why It Matters
For Hong Kong investors, the results underline how heavily Power Assets' near-term earnings were boosted by one-off UK asset sales rather than recurring revenue growth. The unchanged interim dividend and large net cash balance suggest the market will now focus on whether the group can redeploy capital into regulated energy and low-carbon infrastructure assets that match its long-standing return profile.