China Gas Holdings Ltd. (384), which supplies natural gas to 195 cities in Asia’s biggest economy, reported a 58 percent increase in half-year profit, as earnings from supplying the cleaner burning fuel rose.
Net income climbed to HK$1.28 billion ($165 million), or 26.14 cents a share, in the six months ended Sept. 30 from HK$808.2 million, or 17 cents, a year ago, according to a statement to the Hong Kong stock exchange today. Revenue rose 46 percent to HK$10.5 billion.
Air pollution in major Chinese cities including Beijing and Tianjin exceeded hazardous levels several times this year, prompting the government to take measures to curb the burning of coal and encourage the use of natural gas. China Gas may sell as much as 40 billion cubic meters of natural gas in 2020 from an estimated 8 billion cubic meters this year, Chief Financial Officer Eric Leung said last month.
China Gas fell 0.1 percent to HK$9.29 at the close in Hong Kong before the results were announced. The shares have advanced 52 percent this year, compared with a 4.5 percent gain in the city’s benchmark Hang Seng Index.
The company’s revenue from sale of piped gas rose to HK$4.3 billion in the six months, compared with HK$3 billion a year earlier, according to the statement. Revenue from gas connections increased to HK$2 billion from HK$1.2 billion.
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