China Gas, a mainland natural gas distributor plagued by shareholder infighting and corporate governance issues, posted a 52.6 per cent jump in interim underlying profit.
Earnings before interest amounted to HK$921 million in the six months to September 30, up from HK$603.5 million in the year-earlier period. Net profit, which included a derivative instruments loss last year, surged fourfold to HK$373.6 million for the six months to June 30.
The firm said it would maintain its target of selling 5.2 billion cubic metres (bcm) of gas for its full fiscal year ending March 31, 2012. Sales in the six months to September 30 were 2.4bcm. It aims to sell 6.2bcm for the fiscal year ending March 31, 2013.
The firm said this month it had received an offer from 'an independent potential investor' to take a stake but negotiations had yet to take place. Eric Leung Wing-cheong, joint managing director, said yesterday the board had yet to discuss how to react.
China Gas' share price has been hurt since December by alleged and confirmed irregularities by key managers and infighting among key shareholders.
Former managing director Liu Minghui was arrested and detained by Shenzhen police in December for allegedly embezzling corporate assets. No charges have been laid against Liu or former executive president Huang Yong, who was arrested and detained at the same time.
