Towngas commercial, industrial gas sales drop by 12.5pcBusiness | 5 Jun 2020 5:05 pm
Hong Kong and China Gas (0003) said the Hong Kong business fell by 4 percent in the first quarter this year and expects a 2-3 percent drop this year.
The commercial and industrial gas sales were down by 12.4 year-on-year, because restaurant, retail, and hotel sectors were severely impacted from the coronavirus, said Alfred Chan Wing-kin, Hong Kong and China Gas managing director.
He expects overall gas sales to decline by more than 4 percent this year.
Gas sales in the mainland dipped by 12.4 percent in the first quarter. But the executive director and chief operating officer for the utility business, Peter Wong Wai-yee expects a rise of 4-5 percent this year.
Chan estimates that natural gas sales in the mainland will fall by 10 percent in the first half.
Wong said the group will adjust the gas prices in August next year.
Wong also said there is no privatization plan for Twongas China (1083) and no share buy-back plan for Hong Kong and China Gas.
He said the group needs cash to develop new projects.
Chan said a bonus issue of one new share for every 20 existing shares held by shareholders was the right decision amid uncertainties.