Hong Kong utilities’ “going out” mirrors the city’s transition since 1997
Backed by steady returns from their local businesses, Hong Kong utility companies have seen overseas ventures yield results in the past two decades
As much as the defensive counters and perceived safe bets that they are, Hong Kong’s listed utilities have shown that venturing beyond familiar territory has paid off.
Over the past two decades, the city’s gas and power utility firms have grown from being primarily local businesses into multi-markets majors, in tandem with Hong Kong’s transition from being the gateway for foreign firms to enter China into a centre channelling Chinese investments towards overseas projects.
City gas distributor Towngas last year derived around 60 per cent of its utilities revenue and profit from mainland China, where it had 131 natural gas distribution projects and sold 17 billion cubic metres in 23 provinces and administrative regions last year.
This compares to the mere three projects across the border in 1997, with a recorded gas sales of only 2.9 million cubic metres.
Similarly, Power Assets, whose local unit Hongkong Electric is the sole power supplier on Hong Kong island and Lamma island, had set up a consultancy and engineering services unit to serve electricity sector clients worldwide as early as 1975.
