Towngas net profits down by 16% YoY to $3.04b

Geopolitical tensions and hot weather posed a challenge to the group's business.

The Hong Kong and China Gas Company Limited’s (Towngas) saw a decline of 16% in its unaudited profit after taxation attributable to shareholders for the six months ended 30th June 2024, the group’s latest bourse filing showed.

"The first half of 2024 saw geopolitical tensions affecting the recovery pace of both the Chinese mainland and Hong Kong, which fell short of expectations. The strong Hong Kong dollar exchange rate and the trend of Hong Kong residents travelling to the mainland for consumption, coupled with an increased number of high-temperature days during the period, all posed challenges to the Group’s business," the group said.

Moreover, the group’s gas sales volume in the mainland recorded a 7% growth to 18.6 billion cubic metres during the period. 

The group also integrated its mainland brand Towngas Lifestyle into Hong Kong's retail business, totalling to a customer base of 43 million households.
 
Towngas expects its gas sales in Hong Kong to remain stable for the year, with the increase in standard gas tariff and monthly maintenance charge in August offsetting some cost increases. 

Chinese mainland operations are also expected to grow, expanding its renewable energy segment as the mainland advances towards its dual carbon goals.

The group has declared its basic earnings per share to $0.163.