China Gas Annual Profit Rises 52% After Fuel Demand Boosts Sales

China Gas Holdings Ltd. (384), the target of a $2 billion hostile bid from ENN Energy Holdings Ltd. (2688) and China Petroleum & Chemical Corp. (600028), posted a 52 percent increase in annual profit, beating estimates, after sales gained.

Net income in the 12 months ended March 31 climbed to HK$954 million ($123 million), or 20.55 cents a share, from HK$626 million, or 14.6 cents, a year earlier, China Gas said in a Hong Kong stock exchange filing today. The average estimate of 11 analysts compiled by Bloomberg was a profit of HK$946 million. Revenue rose 19 percent to HK$18.9 billion.

Higher profit and rising demand for cleaner-burning natural gas may intensify the battle for control of China Gas, a seller of subsidized fuel in canisters and pipelines. The stock has gained 36 percent since the ENN-led bid on Dec. 13 as some of the company’s biggest shareholders increased their holdings.

China Gas shares fell 1.6 percent to HK$3.81 before the earnings announcement. The benchmark Hang Seng Index declined 0.8 percent.

To contact the reporter on this story: Aibing Guo in Hong Kong at aguo10@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.