INTERIM RESULTS 2024
14 AUGUST 2024
CK Infrastructure Holdings Limited
Earnings & Dividends Per Share (since 2010)
6
5
4
3
2
1
0
2.8
2.4
2
1.6
1.2
0.8
0.4
0
10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 1H24 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 |
Interim DPS | Final DPS | ||
NB: FY14 exclude one-off disposal gain arising from HKE/HEC spin-off and privatization of Envestra
Earnings Per Share
(HK$)
Dividends Per Share
(HK$)
CK Infrastructure Holdings Limited | 1 |
2024 Interim Results Overview
1H24 | |||
(in HK$ million) | 1H24 | 1H23 | vs |
1H23 | |||
Investment in Power Assets | 1,082 | 1,066 | +2% |
United Kingdom portfolio | 1,865 | 1,592 | +17% |
Australia portfolio | 864 | 826 | +5% |
Continental Europe portfolio | 419 | 424 | -1% |
Canada portfolio | 301 | 402 | -25% |
New Zealand portfolio | 80 | 72 | +11% |
HK & Mainland China portfolio | 96 | 102 | -6% |
Total Contribution from Businesses | 4,707 | 4,484 | +5% |
Treasury Related Activities & Others | (177) | (26) | -581% |
Distribution to Perpetual Securities | (219) | (219) | - |
Profit Attributable to Shareholders | 4,311 | 4,239 | +2% |
- Higher revenue, lower finance charges and higher GBP/HKD
- Profit contribution was +14% y-o-y in GBP term
- Higher revenues generated from various businesses
- Profit contribution +7% y-o-y in A$ term
- Flat y-o-y in EUR term
- Reconstruction of Dutch Enviro Energy's waste-to-energy plant has progressed well
- Lower contribution from Canadian Power as a result of lower power prices arising from mild weather and higher supply from renewables in Alberta
- Strong performance from EnviroNZ
- Profit contribution +13% y-o-y in NZ$ term
- Low traffic volume for the toll road operations
- Lower price and volume for the cement businesses in Mainland China
- Higher net finance costs, lower exchange gain and higher corporate overheads
Fund from Operation (FFO) | 3,333 | 4,037 | -17% |
EPS (HK$) | 1.71 | 1.68 | +1.8% |
Interim DPS (HK$) | 0.72 | 0.71 | +1.4% |
CK Infrastructure Holdings Limited | 2 |
Profit Contribution by Region
Continental | ||
Europe | Canada | |
New Zealand | 9% | 6% |
2% | ||
HK & | ||
Mainland | ||
China | ||
2% |
Australia
18%
PAH 23%
1H2024
UK
40%
ContinentalCanada
Europe9%
New Zealand | 9% |
2% |
HK &
Mainland
China
2%
Australia
18%
PAH 24%
1H2023
UK
36%
CK Infrastructure Holdings Limited | 3 |
Solid Financial Position
Jun 30, 2024 | Dec 31, 2023 | |
Cash on hand (HK$ million) | 9,180 | 13,077 |
Debts (HK$ million) | 23,400 | 24,197 |
Total equity (HK$ million) | 131,354 | 133,271 |
Net debt to net total capital ratio | 9.8% | 7.7% |
Net debt to net total capital ratio - look | 47.8% | 46.4% |
through basis* | ||
S&P credit rating | A/Stable | A/Stable |
* Include sharing of net debt in infrastructure investment portfolio on a look-through basis
CK Infrastructure Holdings Limited | 4 |
CKI Gearing Ratio
Net Debt / Net Total Capital
25%
20%
15%
10%
5%
17.6%
16.5%
14.7% | |||||
13.5% | 13.1% | ||||
12.5% | |||||
10.2% | 9.8% | ||||
8.1% | 7.7% | 7.3% | 7.7% | ||
5.4% | 5.3% | 4.5% | |||
0%
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 Jun-24 |
CK Infrastructure Holdings Limited | 5 |
Regulatory Resets Timetable
2024 | 2025 | 2026 | 2027 | 2028 |
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q |
UK Power Networks
Northumbrian Water
Northern Gas Networks
Wales and West Utilities
Phoenix Energy
SA Power Networks
Victoria Power Networks
United Energy
Australian Gas Networks - SA/QLD
Australian Gas Networks - Vic/Albury
Multinet Gas Networks
Dampier Bunbury Pipeline
Wellington Electricity
Current price control period
Future price control period
CK Infrastructure Holdings Limited | 6 |
New Project - Phoenix Energy
- Phoenix Energy is the market leader and one of the three gas distribution networks in Northern Ireland ("NI")
- The acquisition conducted through CK William Energy UK, with CKI, CKA and PAH own 40%, 40% and 20% interest respectively
- Enterprise value = £757 million*
- Total equity consideration = £313 million
Coleraine
LimavadyBallymoney
Londonderry | ||
Larne | ||
Strabane | Magherafelt | Carrickfergus |
Omagh | ||
Bangor | ||
Belfast | ||
Lisburn |
■ Project Highlights
Enniskillen
Portadown | ||
Downpatrick | ||
Armagh | Banbridge | |
Derrylin | Newcastle | |
- Business covers ~48% of NI's population including Greater Belfast and accounts for ~78% of gas connections in NI
- The regulatory regime is similar to NGN/WWU
Revenue cap model with WACC approach
Inflation Indexation
Total regulatory value include depreciated asset value, profile adjustment, capital creditors and working capital
6-year regulatory period (current one from Jan 2023- Dec 2028)
- Facilitate customer's household decarbonisation as 57% of heating energy demand in NI currently uses oil-heating
- 99.9% of the pipelines in the network are HDPE, enabling green gas distribution in the future
Newry
Note*: The enterprise value comprises of the equity consideration of £313 million plus net debt of £444 million as at end 2022.
CK Infrastructure Holdings Limited | 7 |
CKI's Net-zero Pathway
- Net zero targets by businesses solidify the Group's net zero ambition
- Group targets 50% cut on scope 1 and 2 emission by 2035 (2020 baseline)
Our Net Zero Timeline
2020 | 2021 | 50% of Scope 1+2 GHG |
8,308,058 | ||
8,526,487 |
reduction vs 2020
Projected Actual
2022
8,038,737 2023
7,655,236
2050 Net zero
(in tonnes CO2e) | |||||
2020 | 2025 | 2030 | 2035 | 2040 | 2050 |
CK Infrastructure Holdings Limited | 8 | ||||
2023 ESG highlights
Total Spending on Sustainable Activities in 2023 - HK$9.3 billion
Environment
Scope 1+2 emission ↓4.8% vs 2022
Scope 3 emissions
1,355,741 tCO2e
covering 85% of our attributable revenue
76%
Attributable revenue covered by
ISO14001 or other EMS certification
GHG Scope 1 & 2 Emissions by Segment
52% Power Generation / Clean Energy
25% Construction Materials
11% Gas Transmission and Distribution Networks
6% Power Distribution
5% Waste Management <1% Water Utilities & Services<1% Transportation
<1% Household Infrastructure
Social
93%
Full-time employees received training
>127,000 hours
contributed to community investment
Governance
First TCFD-aligned disclosure published 3 New sustainability policies established
• Anti-Harassment Policy | • Biodiversity Policy |
- Workforce Diversity Policy
CK Infrastructure Holdings Limited | 9 |