CK Infrastructure posts 389% profit surge on UK asset sales

CK Infrastructure Holdings Ltd. said annual net profit surged 389% to HK$10.3 billion ($1.3 billion) for the year ended Dec. 31, 2023, up from HK$2.1 billion a year earlier.

The Hong Kong-listed utility and infrastructure group attributed the sharp rise to gains from asset sales in the United Kingdom, which boosted both revenue and net income. Total revenue climbed 18% to HK$25.7 billion, driven primarily by proceeds from the divestments.

The company did not disclose the specific assets sold or the buyers involved in the transactions. CK Infrastructure operates in sectors including energy, water, and waste management, with a significant presence in the UK market.

Chairman Victor Li Tzar-kuoi highlighted the strategic shift toward optimizing the portfolio, stating that the asset sales align with the group’s focus on high-growth markets and core businesses. The company’s board recommended a final dividend of HK$0.48 per share, up from HK$0.20 in the prior year, subject to shareholder approval.

Analysts noted that the profit surge reflects broader trends in infrastructure monetization, particularly in mature markets like the UK, where asset sales can unlock value for shareholders. CK Infrastructure’s shares were down 1.2% in Hong Kong trading following the announcement.