China Gas's H1 net profit skyrockets on strong LPG demand

Dec. 17, 2009 (China Knowledge) - China Gas Holdings Ltd, which is engaged in sales of gas appliances and coke, as well as financial and securities investment, announced yesterday that its net profit soared 4.85 times to HK$431 million in the six months ended Sep. 30, due to strong sales of liquefied petroleum gas.

Earnings per share were 12.95 Hong Kong cents, according to the firm's interim reports.

The Hong Kong-listed firm's turnover increased 138.7% year on year to HK$3.937 billion, of which 44.4% was contributed by its LPG business.

Managing Director Liu Minghui said the company is confident that the strong growth will continue for the second half since people use more gas in winter. The company's residential customers grew to about 4.2 million during the first half from 3.4 million a year earlier.

Chief Financial Officer Eric Leung said that the company plans to spin off its mainland China subsidiary Shanghai Zhongyou Energy Holdings Co and list the unit on the Shanghai Stock Exchange. However, no timetable has been set for the planned listing.

China Gas said earlier that it is in talks with PetroChina to sell some of its stake in Shanghai Zhongyou Energy to the country's largest oil producer, as part of its efforts to help the unit go public in Shanghai.