China Everbright Water posts 2Q18 net profit up 37 percent at HK$192.62 million

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China Everbright Water reported its second quarter net profit rose 37 percent on-year to HK$192.68 million as revenue from the construction, operation and finance segments increased.

Revenue for the quarter increased by 52 percent on-year to HK$1.319 billion, the water environment management company said in a filing to SGX on Tuesday.

“The increase in construction revenue was mainly attributable to construction of several water environment treatment projects including the sponge city construction project and the river-basin ecological restoration project, and construction of the water supply project in addition to the expansion and upgrading of several waste water treatment plants which were under construction during the second quarter of 2018,” China Everbright Water said in the filing.

Construction revenue rose to HK$798.92 million in the quarter, up from HK$525.51 million in the year-earlier quarter, China Everbright Water noted.

It said the operation revenue increased as new projects began operations over the second half of 2017 and the first half of this year, tariff hikes for several projects over that same period and one-off income of HK$20.10 million from retroactive tariff adjustment for a waste treatment project in the quarter. Operation revenue rose by HK$110.58 million from the year-earlier quarter, it said.

Finance income rose by HK$66.65 million from the year-earlier quarter on the increase of the total investment of projects under construction or in operation, China Everbright Water said.

Direct costs and operating expenses rose 56 percent on-year in the quarter ended 30 June to HK$892.95 million, mainly on increased construction costs due an increase in those services, it said.

The company declared an interim dividend of S$0.0049 a share; it didn’t declare a dividend in the year-earlier period.

For the first half, net profit rose 45 percent on-year to HK$370.74 million, while revenue was up 44 percent on-year at HK$2.36 billion.

China Everbright Water noted that during the first half, it signed four waste-water treatment projects and one sludge treatment project.

“This marks great significance to the Company in solidifying its position in the Shandong, Jiangsu and Liaoning provinces,” it said.

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