Li Ka-shing's CK Hutchison, CK Asset profits slump in 2020

[HONG KONG] CK Hutchison Holdings, the ports-to-telecoms arm of retired billionaire Li Ka-shing, reported a 27 per cent fall in 2020 net profit on Thursday, weighed down by sharp drops in oil, gas and fuel prices as the coronavirus pandemic smashed demand.

The bottom line also suffered from asset impairments recognised by its Canadian oil and gas producing arm Husky Energy, which it sold late in the year.

Profit last year was HK$29.1 billion (S$5.03 billion), compared with HK$39.8 billion a year earlier, after accounting adjustments.

The board recommended a final dividend of HK$1.7 per share, compared to HK$2.3 in the previous year.

Chairman Victor Li said in a statement he expected the group's debt to net total capital ratio to be further reduced in 2021 from 22.2 per cent in 2020, following the completion of various deals.

Sister company CK Asset, a major property developer in Hong Kong which also has interests in aircraft leasing, infrastructure and utility assets overseas, said its underlying profit during the period dropped 32.5 per cent to HK$19.4 billion, dragged by hotel, aircraft leasing and UK's Greene King pub businesses.

Shares of CK Hutchison ended up 1.4 per cent on Thursday ahead of the results, while CK Asset climbed 2.5 per cent. The Hang Seng Index rose 1.3 per cent.

REUTERS