ck infrastructure holdings limited annual results 2019 · 3/18/2020 · ck infrastructure holdings...
Post on 30-Jun-2020
0 Views
Preview:
TRANSCRIPT
CK Infrastructure Holdings Limited
Annual Results 2019
18 March 2020
CK Infrastructure Holdings Limited
CK Infrastructure Holdings Limited
2019 Results Overview
1
Profit contribution from: (HK$ million) 2019 2018 2019 vs 2018
Investment in Power Assets
Gain on disposal of 2.05% interest in Power Assets
2,564
427
2,903
-
-12%
N/A
United Kingdom portfolio 4,630 5,275 -12%
Australia portfolio 2,083 2,066 +1%
Continental Europe portfolio 785 870 -10%
Canada portfolio 335 335 -
New Zealand portfolio 174 172 +1%
Hong Kong and Mainland China portfolio 371 389 -5%
Total Profit Contribution 11,369 12,010 -5%
Profit Attributable to Shareholders 10,506 10,443 +1%
EPS (HK$/share) 4.17 4.14 +1%
Interim DPS (HK$/share) 0.680 0.680 -%
Final DPS (HK$/share) 1.780 1.750 +1.7%
Full year DPS (HK$/share) 2.460 2.430 +1.2%
CK Infrastructure Holdings Limited
Sustainable Dividend Growth (23rd Consecutive Year)
2
0.100 0.120 0.130 0.200 0.210 0.215 0.215 0.220 0.240 0.250 0.270 0.297 0.321 0.330 0.365 0.400 0.500 0.525
0.600 0.630 0.670 0.680 0.680
0.160
0.220 0.260 0.290
0.400 0.420 0.465 0.500 0.570
0.708 0.750 0.830 0.838
0.880 1.000
1.165 1.260
1.360 1.475
1.550 1.630
1.710 1.750 1.780
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
2.2
2.4
2.6
96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19
Interim Dividend Final Dividend
Dividends per Share (HK$)
CK Infrastructure Holdings Limited
Global Portfolio
3
United Kingdom
40% UK Power Networks
40%* (12%)
Northumbrian Water
47.1% Northern Gas Networks
30%* (9%)
Wales & West Gas Networks
50%* (15%)
UK Rails
25% Seabank Power
4.8% Southern Water
Australia
23.1% SA Power Networks
23.1% Victoria Power Networks
26.4% United Energy
45.0%* (8.25%)
Australian Gas Networks
40% Multinet Gas
40% Dampier to Bunbury Pipeline
40% Energy Developments
50% Australian Energy Operations Continental Europe
35%* (10.5%)
Dutch Enviro Energy
50% Portugal Renewable Energy
35% ista
As of 18 March, 2020
New Zealand
100% EnviroNZ
50% Wellington Electricity
Canada
50% Canadian Power
50%* (15%)
Park’N Fly
16.3% Canadian Midstream Assets
25% Reliance Home Comfort
Investment in PAH
36.0% Power Assets (6-HK)
Mainland China / HK
33.5% Shen-Shan Highway (Eastern Section)
30% Shantou Bay Bridge
50% Jiangmen Chaolian Bridge
40% Panyu Beidou Bridge
50% Alliance Construction Materials
100% Green Island Cement
100% Anderson Asphalt
100% Green Island Cement (Yunfu)
67% Guangdong Gitic Green Island Cement
Note: * The percentages in ( ) represent the economic benefits acquired from CKHH by CKI
CK Infrastructure Holdings Limited
Analysis on Profit Attributable to Shareholders
4
(in HK$ million) 2019 2018 2019 vs 18
Investment in Power Assets
Gain on disposal of 2.05% interest in Power Assets
2,564
427
2,903
-
-12%
N/A
United Kingdom portfolio 4,630 5,275 -12%
Australia portfolio 2,083 2,066 +1%
Continental Europe portfolio 785 870 -10%
Canada portfolio 335 335 -%
New Zealand portfolio 174 172 +1%
HK & Mainland China portfolio 371 389 -5%
Total Contribution from Businesses 11,369 12,010 -5%
Treasury Related Activities & Others (67) (771) +91%
Distribution to Perpetual Securities (796) (796) -%
Profit Attributable to Shareholders 10,506 10,443 +1%
Negatively impacted by GBP/HKD
Exceptional items (HK$ million) 2019 2018 Non-cash revenue recognition - 783
Decline due to 1) lower contribution from PAH as CKI’s interests reduced to 35.96% in Jan 2019, 2) lower contribution from UK Power Networks, 3) negative impact from FX and 4) lower contribution from HKEI as new SOC started in Jan 2019
Decline due to 1) lower EUR/HKD and 2) one-off deferred tax credit for ista in certain countries in 2018
Weak traffic revenue from toll road businesses in China
Driven by lower interest expenses and full year contribution from the economic benefits acquired from CKHH
CK Infrastructure Holdings Limited
International Businesses – Currency Impact
Profit contribution in HK$ (million)
2019 vs 2018
2019 2018 in HK$ in local currency
UK 4,630 5,275 12% 8%*
Australia 2,083 2,066 1% 7%
Continental Europe 785 870 10% 4%
Canada 335 335 -% 2%
New Zealand 174 172 1% 7%
5
Note: * Profit contribution from the UK in local currency term exclude the impact caused by ceasing to recognize certain non-cash revenue commencing 2019 by UK Power Networks
CK Infrastructure Holdings Limited
Profit Contribution by Regions
6
2019 2018
UK
44% PAH
24%
Australia
17%
HK & China
3%
New
Zealand
2%
Continental
Europe
7% Canada
3%
HK & China 5%
Australia 5%
Others 1%
UK 13%
UK
41% PAH
26%
Australia
18%
HK & China
3%
New Zealand
2%
Continental
Europe
7%
Canada
3%
HK & China 7%
Australia 5%
Others 3%
UK 11%
CK Infrastructure Holdings Limited
Solid Financial Position
7
Dec 31, 2019 Dec 31, 2018
Cash on hand (HK$ million) 12,077 6,090
Debts (HK$ million) 31,742 30,139
Total equity (HK$ million) 126,374 121,904
Net debt to net total capital ratio 13.5% 16.5%
S&P credit rating A/Stable A/Stable
CK Infrastructure Holdings Limited
CKI Gearing Ratio (Since 2000)
8
Net Debt / Net Total Capital
26.7%
15.1%
17.0%
15.0%
12.4%
2.7%
4.3%
Net cash
3.3%
Net cash
5.4%
12.5%
5.3%
8.1%
10.2%
7.7%
4.5%
17.6% 16.5%
13.5%
0%
5%
10%
15%
20%
25%
30%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
CK Infrastructure Holdings Limited
Regulatory Resets Timetable
» Regardless of the regulatory environment, CKI’s regulated businesses target to be efficient operators under their respective regimes
9
2019 2020 2021 2022 2023
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 Group
Northern Gas Networks
Wales and West Utilities
SA Power Networks
Victoria Power Networks
Australian Gas Networks - SA/ QLD
Australian Gas Networks - Vic/ NSW
Dampier to Bunbury Pipeline
United Energy
Multinet Gas
Wellington Electricity
Current price control period
CK Infrastructure Holdings Limited
Significant Reductions in Allowed Returns
» Operating outperformance is unlikely to fully offset these
reductions
10
Northumbrian Water UK (real returns)
SA Power Networks (Australia) (nominal returns)
* Source: Ofwat Final Determination (Dec 19)
** Source: Australia Energy Regulator (AER) Draft Decision (Oct 19)
CK Infrastructure Holdings Limited
Some Examples of Our Environmental Initiatives
» CKI is a global infrastructure player with significant investment in energy infrastructure
» We recognize the significance of climate change; impacts to the environment are embedded into our decision makings, from strategic planning at the group level to the day-to-day operations for our business units
» CKI’s businesses are pursuing decarbonisation through various means:
• Our gas companies in the UK (Wales and West Utilities, Northern Gas) are pursuing innovative approaches to investigate the feasibility of converting the existing gas network to incorporate hydrogen supported by regulatory funding
• Australian Gas Networks is developing Hydrogen Park SA, a hydrogen production facility under construction, which will blend hydrogen produced into the local gas distribution network in parts of South Australia, which is fully supported by the South Australian Government
• UK Power Networks is building energy infrastructure to support electric vehicle (EV) charging and smart meter projects; currently there are nearly 70,000 EVs in its area of operation and this is estimated to reach 4 million EVs by 2030. By the end of 2019, UKPN had over 6GW of renewable energies connected to its networks
11
CK Infrastructure Holdings Limited
Disclaimer
12
Potential investors and shareholders of the Companies (the “Potential
Investors and Shareholders”) are reminded that the Presentation comprises
extracts of recent operational data and financial information of the Group
which have not been reviewed or audited by the Companies’ auditors.
Potential Investors and Shareholders should exercise caution when investing
in or dealing in the securities of the Companies.
CK Infrastructure Holdings Limited
Thank You
top related