The Hong Kong and China Gas Company Limited (Towngas) has announced an increase in shareholder profit, driven significantly by its urban gas and renewable energy sectors. Before accounting for property revaluations, the company reported a 2% rise in attributable profits to $5.668 billion in 2024. Including non-operating gains and losses, the total profit amounted to $5.712 billion. The year saw revenue reach $55.473 billion, with core operating profit climbing by 5%. The growth was primarily attributed to Towngas' city-gas and renewable energy businesses.

Towngas' subsidiary, Towngas Smart Energy Company Limited, experienced a notable 34.5% increase in core operating profit, reaching $1.601 billion. Renewable energy contributed substantially with a fivefold increase in net profit, amounting to $322 million. Additionally, upcoming projects include a sustainable aviation fuel plant in Malaysia set to start production in Q3 of 2025 and a green methanol plant in collaboration with Foran Energy Group, beginning construction mid-2025.

Urban Gas Expansion and Profit Growth

Despite only a marginal increase in overall gas sales volume last year, Towngas' urban gas operations on the Chinese mainland demonstrated robust expansion. Sales volumes surged by 5%, totaling 36.4 billion cubic meters. This substantial growth contributed significantly to the company's financial performance, reflecting the growing demand for efficient energy solutions across major cities in the region.

In addition to driving profit growth, the urban gas business underscores Towngas' strategic focus on expanding its presence in mainland markets. By enhancing infrastructure and investing in cutting-edge technologies, the company aims to meet escalating consumer demands while maintaining operational efficiency. This strategy not only supports current profitability but also ensures long-term sustainability through scalable solutions tailored to urban environments. The integration of advanced distribution networks and customer service enhancements further solidifies Towngas' position as a leading provider in this sector.

Renewable Energy Initiatives and Future Projects

Towngas continues to diversify its portfolio with significant investments in renewable energy. The subsidiary Towngas Smart Energy Company Limited achieved remarkable success, reporting a 34.5% increase in core operating profit. Moreover, the renewable energy segment witnessed a dramatic fivefold surge in net profit, contributing $322 million to the bottom line. These achievements highlight the company's commitment to leveraging innovative technologies for cleaner energy solutions.

Looking ahead, Towngas is poised to enhance its renewable energy capabilities through upcoming projects. The sustainable aviation fuel plant in Malaysia, scheduled to commence operations in Q3 2025, will add 300,000 tonnes of annual production capacity. Additionally, the green methanol plant, in partnership with Foran Energy Group, will begin construction mid-2025, aiming to achieve an initial annual production capacity of 200,000 tonnes by 2028. These initiatives underscore Towngas' dedication to fostering a sustainable future, aligning with global environmental goals while ensuring continued financial growth.