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Friday, March 22, 2019, 23:06
Natural gas demand lifts CIMC profits
By Sun Feier
Friday, March 22, 2019, 23:06 By Sun Feier

Shenzhen-based energy, chemical and liquid-food equipment provider CIMC Enric Holdings posted increases in both net profit and income last year, boosted mainly by China’s growing imports of natural gas as the nation seeks greater use of environmentally friendly fuel.

The company reported on Friday a year-on-year, 87-percent jump in net profit to 785 million yuan ($117 million), while revenue surged nearly 22 percent year-on-year to 13.05 billion yuan.

The coming decade will be a golden period for natural-gas development in China, and imports of natural gas, particularly LNG, are expected to sustain rapid growth

Leo Yang Xiaohu 

general manager and executive director, CIMC

It declared a final dividend of HK$0.14 per share for the year ended Dec 31, 2018 – up 50 percent over the previous year – with a dividend payout ratio of around 30 percent last year.

Last year, China overtook Japan to become the world’s largest natural-gas importing nation, especially for liquefied natural gas (LNG) imports, that directly beefed up the demand for natural-gas equipment and services, contributing 46.2 percent to CIMC’s total revenue.

CIMC’s clean-energy, chemical and environmental segments, as well as the liquid-food segment, saw revenue increases in 2018 – climbing 21.5 percent, 24.5 percent and 19.1 percent, respectively.

“The coming decade will be a golden period for natural-gas development in China, and imports of natural gas, particularly LNG, are expected to sustain rapid growth,” Leo Yang Xiaohu – the company’s general manager and executive director – said on Friday.

“Moreover, with the Sino-US trade talks making progress in recent sessions, the volume of Sino-US trade in energy, such as natural gas and ethane, is expected to go up, which would benefit the segment directly,” he said.

CIMC, Yang said, will continue to look for ways of linking the upstream, mid-stream and downstream segments of the natural gas business chain to meet the nation’s shift away from coal in favor of natural gas.

CIMC’s share price picked up 5.23 percent to close at HK$8.05 in Hong Kong trading on Friday on a turnover at HK$87.97 million. The benchmark indicator Hang Seng Index gained 0.14 percent, or 41.8 points, to 29,113.36.

joycesun@chinadailyhk.com


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