This presentation and subsequent discussion may contain certain forward-looking statements. These forward-looking statements reflect the company s

Transcription

1 1

2 This presentation and subsequent discussion may contain certain forward-looking statements. These forward-looking statements reflect the company s view on some future events and involve known and unknown risks and uncertainties and other factors which may cause actual performance and development differ materially. Past performance cannot be relied on as a guide for future performance. 2

3 o o o o o Double digit organic growth >10 new City Gas projects a year Urbanization drives housing demands Air Quality issue favors gas consumption Upstream Supply remains bottleneck, but improving Mainland China o o o Natural gas reformed happened, was smoothly dealt with Operating costs on the rise, countered by economies of scale C&I gas sales dominates at 76%, and increasing 3

4 4 4

5 Heilongjiang Jilin Liaoning Inner Mongolia Hebei Shandong Anhui Jiangsu Sichuan Chongqing Zhejiang Hunan Jiangxi Fujiang Guizhou Guangxi Guangdong Hong Kong projects covering provincial regions Piped city-gas City-gas Midstream 14 new city-gas (2013) 5 new city-gas (2014) 1 new Filling Station (2014) As of Feb 28,

6 City-gas 19 projects 12. Feicheng, Shandong Cangxian, Hebei Xingyi, Guizhou 2 3. Zhengpugang, Anhui 11. Mengcun, Hebei Lishui Songyang, Zhejiang 3 4. Mianzhu, Sichuan Dafeng, Jiangsu Baotou Guyang, Inner Mongolia 4 5. Boxing, Shandong Jiangping, Liaoning 56. Wuhu, Anhu Zhongwei, Guangxi 67. Fengxi, Guangdong Shijiazhuang, Hebei 78. Bozhou, Anhui Leshan, Sichuan 89. Yanshan, Hebei Siping, Jilin 10 Gas consumption in 5 years: 2.1Bn m³ /year Investment: Rmb2.9Bn Inner Mongolia 19 Hebei Heilongjiang Liaoning Shandong Jilin Filling Station 1 project Qiqihar, Heilongjiang Gas consumption in 5 years: 7Mn m³ Investment: Rmb22Mn 3 Jiangsu Henan 11 Shaanxi Sichuan Hubei Anhui 15 Chongqing Zhejiang Hunan Jiangxi 18 Guizhou Fujian 17 Guangxi 6 12 Guangdong Hainan 6

7 Q Injection from HKCG New Existing Q

8 8

9 o Strong profit growth of 32% to HK$1,106Mn o Exchange gain accounted for 13.6% o Gas sales volume grew by 15% (excluding 13% owned Chengdu JV) o Total 93 JVs (17 provincial regions) 14 projects added in projects added in

10 (HK$Mn) Change Turnover Gas Sales Connection Fees 3,972 1,211 5,265 1, % +20% 5,183 6, % Profit attributable to shareholders 841 1, % Basic EPS (HK cents per share) % Full Year Dividend (HK cents per share) % 10

11 (HK$Mn) Change Total Assets 21,255 25, % Total Liabilities 9,968 12, % Total Equity 11,287 13, % Gearing Ratio * 18.6% 20.9% Note: * Definition of Gearing Ratio: Net Debt excluding HKCG loans ( ND ) to equity attributable to shareholders plus ND 11

12 (HK$Mn) Change Shared Turnover 10,103 12, % Operating profit 1,025 1, % Profit margin ratio 10.1% 10.1% Margin Maintained Exchange difference Administration expenses (116) (140) Financial cost (113) (127) Profit attributable to shareholders 841 1, % *All JVs on attributable basis

13 Gas Sales Volume (Bn m³) (Bn m³) Change Industrial % Commercial % Residential % Total % *All JVs (100%) 13

14 Volume (Mn m 3 ) Change Subsidiaries 1,318 1, % JCEs & Associates 2,890 3, % Chengdu JV 1,108 1,124 +1% Total 5,316 5, % Excluding Chengdu 4,208 4, % Note: Chengdu JV with 13% shareholding is classified as financial investment 14

15 Net Profit (HK$Mn) , HKCG became a major shareholder in

16 Effective 10 July 2013 Affect non-residential consumption 49 JVs affected Progress-to-date: o 46 out of 49 affected JV passing-through o 98% of the affected volume passing-through o 2013 financial impact not significant 16

17 Gas Sales Volume Mix (%) No. of Customers & Efficiency Residential Commercial Industrial 25% 24% (Mn) Customers No. (LHS) Gas Volume/Employee No. (RHS) 293 ( 000 m³) % 17% 59% 17% * All JVs (100%) 17

18 16 January 2013 No. of share placed Net Proceeds raised Over-subscription 18

19 Henderson Land Development Company Ltd (12 HK) Hong Kong and China Gas Company Ltd (3 HK) 41.50% Towngas China Company Limited ( TCCL ) (1083 HK) 62.31% 19

20 20

21 300 National NG Demand Forecast Bn m vs % (Source:BP, Guangdong Oil & Gas Association, CNPC) 21

22 o o o Increasing natural gas supplies: - W2E2, W2E3 - W2E4, W2E5 (planning) - Myanmar pipeline - Russia Eastern Pipeline China remains a worldwide manufacturing base Increase in urbanization rate: Urbanization rate: 47.5% 53.4% 57% 70% o o Year: 2010 No change in connection fee policy Chinese government plans to invest Rmb1,700 billion to tackle pollution problems in next 5 years - reduce emissions - promote utilization of natural gas 2013E 2020E 2035E 22

23 An Immense National Grid A Heilongjiang A Jilin Xinjiang 1 Inner Mongolia Beijing Liaoning NG Source Commissioning Year Capacity West to East Bn m 3 West to East Bn m 3 Central Asia >55 Bn m 3 Qinghai Ningxia Gansu Shaanxi Hebei Shanxi Shandong Jiangsu Henan 4 5 Sichuan to East Bn m 3 Myanmar to China Oct Bn m 3 Sichuan 4 Chongqing Hubei Anhui Zhejiang A Russia to China 2018 (expected) 38 Bn m 3 Hunan Jiangxi HKCG Shanxi LCBM Mn m³ Guizhou Fujian 6 West to East Bn m 3 5 Guangxi Guangdong West to East 4 & 5 Route survey completed Each 45 Bn m 3 Yunnan Hong Kong Existing LNG Terminal 44M tonnes LNG Terminal under construction 30M tonnes Hainan LNG Terminal under planning 65M tonnes 23

24 Heilongjiang Jilin o Target: 10 new projects / year Sichuan Yunnan Liaoning Beijing Hebei Shanxi Shandong Shaanxi Henan Hubei Jiangsu Anhui Chongqing Zhejiang Inner Mongolia Guizhou Guangxi Hunan Jiangxi Fujian Guangdong Hong Kong o Penetration into neighboring cities o Focusing in new territories: Inner Mongolia Shanxi Guangxi Guizhou Yunnan Hainan 24

25 25