CK Infrastructure reports steady growth amid economic challenges

Published 19/03/2025, 10:14
CK Infrastructure reports steady growth amid economic challenges

LONDON - CK Infrastructure Holdings Limited (LSE: CKI), a global infrastructure company, announced a resilient financial performance for the year ended December 31, 2024, amidst a challenging economic landscape marked by geopolitical tensions, inflationary pressures, and interest rate hikes.

The company, which operates a diverse portfolio of infrastructure businesses, recorded a 10% operational profit growth year-on-year, driven by its regulated businesses, long-term contracts, and loyal customer base with low churn rates. Despite higher interest costs and lower exchange gains compared to the previous year, CKI reported a marginal net profit increase of 1% to HK$8,115 million.

CKI continued its growth trajectory through strategic acquisitions, including Phoenix Energy, UK Renewables Energy, and assets acquired by UK Power Networks Services. These investments have begun generating revenue immediately following their completion.

In a significant corporate development, CKI launched a secondary listing on the London Stock Exchange (LON:LSEG) on August 19, 2024, enhancing its global standing and providing additional fundraising channels for future large-scale acquisitions.

The company’s commitment to shareholder returns was underscored by its 28th consecutive year of dividend growth since its initial public offering in 1996. The Board recommended a final dividend of HK$1.86 per share, resulting in a total dividend of HK$2.58 per share for the year, a 0.8% increase from the previous year.

CKI’s UK infrastructure portfolio stood out with a 31% profit increase, attributed to strong performances by regulated utilities and renewable energy projects. The Australian portfolio saw a 4% profit decline due to tax charges, but excluding this impact, profits would have increased by 6%. Continental Europe and New Zealand portfolios also reported profit growth, while the Canadian portfolio experienced a 19% decrease due to lower profits from Canadian Power and new tax rules.

The company’s financial foundation remained solid, with HK$8 billion in cash on hand and a healthy net debt to net total capital ratio of 7.8%. Standard & Poor’s reaffirmed CKI’s credit rating of "A/Stable."

CKI also made progress in sustainability and decarbonization, with initiatives across its electricity and gas distribution networks, renewable energy projects, and environmental services.

Looking ahead, CKI remains cautious but optimistic about its prospects in 2025, emphasizing financial prudence and stability in its growth strategy. The company is well-positioned to capitalize on opportunities despite ongoing global market uncertainties.

This report is based on a press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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