Profit of Power Assets jumps 10pc on overseas operations

Power Assets Holdings, the sole electricity supplier to Hong Kong and Lamma islands, says it will continue to seek opportunities to expand its "asset portfolio" after posting a 10 per cent rise in first-half profit.

The company's overseas acquisitions have continued to boost its profit, while earnings from its domestic business have remained flat.

Overseas operations contributed 63.4 per cent of total profit in the first half, compared with 59.5 per cent in the year-earlier period. The figure was 12.8 per cent in 2008.

Sanford C. Bernstein analyst Michael Parker said the firm's overseas expansion in recent years had gone beyond diversification.

"The days of investment outside Hong Kong as diversification are over. Hong Kong is now a tax-efficient location from which to run a geared, global utility fund," he wrote.

Power Assets reported net profit of HK$4.77 billion for the six months to June 30, up from HK$4.33 billion in the year-earlier period. Turnover slid 2.3 per cent to HK$4.79 billion.