Hong Kong railway operator MTR posts 37.5 per cent decline in net profit for half year

Reading Time:4 minutes

From left, Jacob Kam Chak-pui, managing director (operation and mainland business), Lincoln Leong Kwok-kuen, chief executive officer, and Herbert Hui Leung-wah, finance director of MTR Corporation, attend a press briefing to announce half year results on Tuesday. Photo: Jonathan Wong

Published: 5:45pm, 9 Aug 2016Updated: 10:58pm, 9 Aug 2016

MTR Corp, Hong Kong’s sole operator of mass transit railways, has warned of more possible project delays and cost overruns as it posted a 37.5 per cent year-on-year decline in net profit for the first six months of the year on the back oflower property development profits.

In a briefing to reporters MTR chief executive Lincoln Leong Kwok-kuen said that “given the very tight timetable, there remains a number of risks” that could mean the end-December target completion date is not met on the HK$16.9 billion South Island line (East) linking Admiralty to Wong Chuk Hang. He added that costs in excess of the budgeted HK$16.9 billion are “not expected to be material”.

Outstanding jobs to be completed include civil, electrical and mechanical work, as well as inspection by the government.

In addition, citing “external events” including archaeological finds, late handover of critical work sites by other parties and additional underground works, Leong said the 17-km Shatin-to-Central Link is “likely” to see its cost estimate “revised upwards significantly”.

He declined to give any cost revision estimate, saying a cost review will only be completed in the second half of next year since the north-south segment of the project is only 35 per cent complete.

MTR had previously said an 11-month delay and unforeseen work arising from the archaeological finds would cost an additional HK$4.1 billion.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x