Hong Kong and China Gas (Towngas), the city's dominant piped-gas supplier, reported a 5.3 per cent rise in recurring profit last year to HK$3.22 billion on moderate growth in gas supply and property rental income.
Including HK$1.77 billion in sales of residential units and a revaluation gain of HK$858.8 million from investment properties, attributable profit for the year to December jumped 11 per cent to HK$5.86 billion from HK$5.28 billion in 2005. The median estimate in a Bloomberg survey of seven analysts was HK$5.36 billion.
Sales were up 44 per cent at HK$13.46 billion, mainly from property development and gas distribution.
Last year, it sold flats at Grand Waterfront in Ma Tau Kok and Grand Promenade in Sai Wan Ho and King's Park Hill in Ho Man Tin. About half of Grand Waterfront's 1.2 million square foot residential floor area and 76 per cent of Grand Promenade's total of 1.7 million sq ft have been sold.
The 143-year-old utility expected property sales would continue to drive profit growth this year, complemented by contributions from newly acquired associate, Panva Gas Holdings, one of the largest piped-gas suppliers in the mainland, Towngas managing director Alfred Chan Wing-kin said.
Towngas completed the deal to become Panva's largest shareholder to be less reliant on the mature Hong Kong market. Combined, the two outfits have 60 networks in 55 mainland cities and 12 provinces.
