China Gas pricing change results in extra dividend
Investors will get an interim dividend now and the company plans to raise its total annual payout ratio to about 30 per cent of net profit
China Gas, which has endured in-fighting among top management and a prolonged battle against hostile takeover bids in the past two years, declared its maiden interim dividend since its establishment a decade ago.
The Shenzhen-based firm, the mainland's largest city natural gas distributor by number of projects, posted a 116 per cent jump in interim profit.
It plans to continue paying interim dividends and aims to gradually raise its annual payout ratio to about 30 per cent. It paid a dividend amounting to 13.5 per cent of its net profit in 2010, and 18 per cent last year. An interim dividend of 2.2 HK cents has been recommended by the board.
China Gas reported a net profit of HK$808.2 million in the six months to September 30. Revenue grew 8.3 per cent to HK$8.57 billion year on year, mostly due to a 27.6 per cent rise in piped gas sales to 3.05 billion cubic metres.
The average selling price to industrial customers, which accounted for 72 per cent of total sales, rose 10.3 per cent.