Towngas to halt gas fee adjustments

Cici Cao

The Hong Kong and China Gas Company's (0003) net profit dropped 5.9 percent to HK$5.71 billion in 2024 from a year earlier on the absence of non-cash gains in 2023 from selling 25 percent stake in Shanghai Gas.

Managing director Peter Wong Wai-yee said that the company will no longer adjust gas fees every two years as it did in the past, citing the shift from a low-interest to a high-interest environment and geopolitical uncertainties, such as tariffs.

Wong added future bonus share issuance will depend on stable business growth. He noted the company is considering alternative ways to reward shareholders, such as higher dividends.

The company maintained a final dividend of 23 HK cents, resulting in a full-year payout of 35 HK cents.

The company, also known as Towngas, said Hong Kong gas sales edged up by 0.1 percent to 27.16 billion megajoules last year, boosted by commercial and industrial gas consumption growth amid recovered aviation and hotel sectors.

However, warmer weather and outbound travelers dragged down the consumption.

Total revenue dropped by 2.6 percent to HK$55.47 billion.

In the mainland, total gas sales expanded nearly 5 percent to 36.4 billion cubic meters and customer numbers grew 5.7 percent to 42.49 million.

On the green energy front, chief investment officer Alan Chan Ying-lung revealed the Towngas's subsidiary EcoCeres has no concrete plans for an initial public offering at this time.

However, Chan noted that EcoCeres meets listing requirements in multiple markets and could "launch the process at any time" if needed.

Earlier, Bloomberg reported the producer of sustainable aviation fuel was exploring an IPO that could value it at around US$5 billion (HK$39 billion).