Power Assets (00006) posts FY2025 net profit of HK$6.24 billion, maintains HK$2.82 dividend; prepares UKPN divestment

Bulletin Express
Mar 18

Power Assets Holdings Limited (00006) reported a 2.00 % year-on-year rise in net profit to HK$6.24 billion for the year ended 31 December 2025, supported by an 8 % increase in funds from operations and steady returns from its global, largely regulated infrastructure portfolio.

Revenue and Earnings • Group revenue fell to HK$771 million from HK$919 million, reflecting lower interest and dividend income, yet strong contributions from associates and joint ventures lifted profit before tax to HK$6.45 billion, up 1.61 %. • Share of results from joint ventures and associates reached HK$6.14 billion and HK$2.09 billion respectively. • Basic earnings per share rose to HK$2.93 from HK$2.87.

Dividend • The board proposed a final dividend of HK$2.04 per share, bringing the full-year payout to HK$2.82 per share, unchanged from 2024. Payment is slated for 9 June 2026, subject to shareholder approval on 20 May 2026.

Balance Sheet and Liquidity • Net debt stood at HK$0.79 billion, translating into a standalone net-debt-to-capital ratio of 1 %. On a look-through basis (including investee debt) the ratio was 46 %, slightly above last year’s 44 %. • Cash and bank deposits amounted to HK$2.53 billion, with HK$1.50 billion in undrawn committed facilities. • Standard & Poor’s reaffirmed the Group’s long-term issuer rating at “A/Stable” on 19 February 2025.

Geographical Performance • United Kingdom remained the largest earnings contributor at HK$3.21 billion, with UK Power Networks (UKPN) maintaining 99.99 % reliability despite softer earnings. • Australia generated HK$1.46 billion, a 4 % improvement, underpinned by new regulatory terms for SA Power Networks and network expansion at CitiPower and Powercor. • Canada, Mainland China, the Netherlands, New Zealand and Thailand continued to provide stable cashflow, while UK Renewables delivered 195 GWh of clean power in its first full-year contribution.

Capital Management and Sustainability • Capital expenditure across investments was funded mainly by operating cashflows and investee distributions. • ESG initiatives advanced, including hydrogen blending milestones at Australian Gas Networks and AI-enabled grid optimisation projects in the UK and Victoria.

Subsequent Events • In February 2026, Power Assets, CK Infrastructure and CK Asset signed an agreement to sell their combined 100 % stake in UKPN to Engie S.A. Power Assets’ share of the consideration is approximately GBP4.22 billion, with completion targeted before end-June 2026 pending regulatory and shareholder approvals. • The consortium also completed the sale of UK Rails in January 2026 for GBP1.10 billion.

Outlook Management plans to pursue disciplined acquisitions in mature, well-regulated energy markets and to leverage AI-driven efficiencies while maintaining a conservative capital structure and consistent dividend policy.

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