Towngas Targets Double-Digit Profit Growth This Year
On.cc · 1 SOURCESabout 2 hours ago2 MIN
Summary
The Hong Kong and China Gas Company, commonly known as Towngas, said it is aiming for double-digit growth in full-year net profit, while maintaining an interim dividend of HK12 cents. Hong Kong gas sales fell 3.5% in the first half, but the decline narrowed to 2% by mid-August after heavier rainfall in July and August boosted consumption. Managing director Peter Wong Wai-yee said residential demand is still being weighed down by Hong Kong residents spending more across the border and by smaller average household size. He added that long-term investment tied to the Northern Metropolis could eventually raise gas sales by 15% to 16% as the area adds population and commercial activity.
Key Points
- Wong said demand for sustainable aviation fuel, or SAF, should keep rising as countries implement standards and set targets for the fuel.
- For the second half, a new Malaysia plant still needs commissioning, while the Zhangjiagang plant in Jiangsu will undergo one to two months of scheduled maintenance.
- Because of those operational factors, management currently expects full-year SAF output to exceed the first-half level of 320,000 tonnes.
- Wong declined to comment on market speculation that EcoCeres could be spun off for a separate listing.
- Towngas expects Northern Metropolis-related capital investment to total HK$13.1 billion over five years, with 1.5 million new residents potentially lifting gas sales 15% to 16%.
Why It Matters
For Hong Kong readers, the company is balancing near-term pressure on household gas demand against a long pipeline of infrastructure spending and urban development. Its cautious stance on dividends and possible future tariff increases also points to how geopolitical energy risks and local cost pressures could affect utility customers over time.