Towngas Smart Energy Company (1083) H1 2024 earnings summary

Executive summary

• Revenue rose 6.3% year-over-year to HK$10,501 million in 1H2024, with core operating profit up 57.5% to HK$707 million, driven by strong renewable energy and steady gas business performance.

• Profit attributable to shareholders fell 33.4% to HK$743 million due to lower non-operating gains.

• Gas sales volume increased 6% to 8.74 billion cubic metres, with city-gas customers reaching 17.22 million and improved dollar margin.

• Renewable energy net profit surged to HK$164 million, with 2.1GW grid-connected capacity and rapid project expansion.

• Strategic focus on core businesses, cost optimization, and asset-light renewable energy growth.

Financial highlights

• Revenue: HK$10,501 million (up 6.3% year-over-year).

• Core operating profit: HK$707 million (up 57.5%).

• Profit attributable to shareholders: HK$743 million (down 33.4%).

• Basic EPS: 22.14 HK cents (down 36%).

• Capital expenditure decreased to HK$2.0 billion from HK$3.3 billion in 1H2023.

Outlook and guidance

• Gas sales volume expected to grow 7% in 2024, with city gas dollar margin to rise by 2 cents/m³.

• Renewable energy aims for 2.3 GW accumulated grid-connected capacity and rapid profit growth.

• Anticipates continued growth in city-gas and renewable energy businesses in 2H2024, supported by national energy policies.

• Plans to maintain resilience amid global economic uncertainty and high interest rates, focusing on cost control and efficiency.

• Overseas LTA scale targeted at 1.5 million tonnes/year (approx. 2.1 billion m³).