HK Electric Investments hits 3-1/2 mth low; co plans to cut dividend in coming years

HK Electric Investments

20/03/2019 04:54

** Shares of Hong Kong-listed HK Electric Investments Ltd
 2638.HK  fall as much as 3.8 pct to HK$7.51, their lowest since
Dec. 6, 2018, after the power industry focused investment trust
says it will reduce dividend payout in the years to come
    ** Co says 2018 net profit fell 8.7 pct to HK$3.1 bln 
($394.9 mln) and says there will be about 20 pct reduction in
distributions to the holders of share stapled units (SSU) in the
next few years  urn:newsml:reuters.com:*:nFWN21512U
    ** Co reduces the distributions as it sees about 20 pct drop
in the rate of permitted return under the new Scheme of Control
Agreement, and it is undertaking a HK$26.6 bln capital
investment programme under the 2019-2023 development plan
    ** Hang Seng utilities sub-index  .HSNU  slides 0.7 pct, and
the benchmark index  .HSI  eases 0.5 pct
    ** As of last close, HK Electric stock down 1.14 pct so far
this year
    ** HK Electric has underperformed the Hang Seng Finance
Index sector  .HSNF  by 7.4 percentage points in the past one
month


($1 = 7.8498 Hong Kong dollars)

 ((Reuters Messaging:
donny.kwok.thomsonreuters.com@reuters.net))