Cheung Kong, Hutchison interim profits beat forecasts
Updated: 2010-08-06 07:22
By Oswald Chen(HK Edition)
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Li Ka-shing (right), chairman of Cheung Kong (Holdings) Ltd (CKH) and Hutchison Whampoa Ltd, attends a press conference Thursday in Hong Kong to announce the companies' interim results with his son Victor Li, deputy chairman of CKH. Jerome Favre / Bloomberg News |
CKH offers an interim dividend of HK$0.5; HWL's comes at HK$0.51
Cheung Kong (Holdings) Ltd (CKH), billionaire Li Ka-shing's property flagship, said its interim net profit rose 4 percent from a year ago to HK$11.92 billion, beating the median market forecast of HK$7.76 billion, due to increased property sales and a bigger profit contribution from Hutchison Whampoa.
CKH proposed to pay an interim dividend of HK$0.5 per share, unchanged from the same period last year.
Excluding the shared profit from its 49.9 percent-owned subsidiary Hutchison Whampoa (WHL), profit for the period was up only 1 percent to HK$8.7 billion.
Hutchison contributed HK$3.22 billion in net profit to CKH, up 12 percent from a year ago after the ports-to-telecoms conglomerate posted positive results during the same period.
On the same day, Hutchison reported a net profit for the six months ended June of HK$6.45 billion, representing 12 percent year-on-year growth, higher than the median market estimate of HK$4.4 billion, as earnings from its port and retail operations grew while losses from its 3G telecom operations narrowed.
Hutchison declared an interim dividend of HK$0.51 per share, unchanged from the six months to June 2009.
In the absence of gains from the disposal of assets or investments during the period, Hutchison's operating profit declined 1 percent to HK$17.99 billion. It booked HK$4.65 billion in disposal gains in the first half of 2009 from the merger of its Australia 3G business with Vodafone Group Plc's.
Hutchison's 3G telecom operations, the 3 Group, continued "bleeding". It suffered an operating loss of HK$998 million during the period but the loss has declined 82 percent from a year ago.
Li Ka-shing, chairman of both CKH and Hutchison, told a press briefing for the interim results that he is optimistic for the global economy in the second half and that Hutchison possesses excellent growth prospects because its different businesses have strong cash flow potential.
"The business segments of container port, retail, 3G networks as well as property and hotel investments all can bring strong cash flows to Hutchison. The financial health of the company is sound as it has HK$106 billion cash on hand. And we expect Hutchison to generate $40 billion in 2010."
Li said Hutchison's global 3G business may make profit next year and if this business segment starts to make profit, Hutchison will consider increasing dividends for its shareholders.
He also said the Husky Energy unit will still make profits even though oil prices have retreated. He disclosed that the Canadian energy company will accelerate its business expansion this year.
Regarding the group's future business expansion plan, Li said that the group is currently considering acquiring some infrastructure projects that may help boost future business growth.
CKL's associate Cheung Kong Infrastructure Holdings Ltd and its affiliate Hongkong Electric Holdings jointly announced last week that they have offered to pay $9.1 billion to acquire Electricite de France's power grid assets in the UK, signaling its intention to further expand overseas.
China Daily
(HK Edition 08/06/2010 page3)