Cheung Kong Infrastructure seeks opportunities in Asia, North America, Europe

HONG KONG (AFX-ASIA) - Cheung Kong Infrastructure Holdings Ltd said it is keeping a close eye on opportunities in the Asian, North American and European infrastructure markets. In a statement, chairman Victor Li said the group's geographical expansion beyond Hong Kong and mainland China will continue and it will look for new opportunities in business areas where it has existing operations. The group's Australian investments already account for more than 50 pct of its total investments outside Hong Kong, he said. CKI earleir today reported a net profit for 2000 of 3.228 bln hkd on sales of 3.345 bln, compared with a net profit of 3.141 bln and revenues of 3.187 bln in 1999. The company said its infrastructure materials and infrastructure-related businesses' contribution to group profits fell by 44 pct while its energy division's contribution rose by 52 pct. The transportation division's contribution rose by 9.0 pct. The reduced profitability of the infrastructure materials business was due to the general business downturn in the construction industry, led by cuts in government-subsidised housing and the slowdown in the construction of infrastructure projects. The impact on its subsidiaries, Green Island Cement (Holdings) Ltd and Anderson Asia (Holdings) Ltd, were therefore "unavoidably great," the company said. The energy division remained the largest profit contributor, accounting for 78 pct of the group's total profits, the statement said. In 2000, Cheung Kong Infrastructure increased its stake in Hongkong Electric Holdings Ltd to 38.87 pct from 37.63 pct. The group said its investments stood at 23 bln hkd at end-2000, of which investments in mainland China totalled 11 bln hkd and investments in Australia 12 bln hkd. At end-2000, CKI's gearing stood at 35 pct, compared with 11 pct at end-1999. The company said the rise reflects the new financing facilities it took on to acquire ETSA Utilities and Powercor Australia Ltd during 2000. It added at the end of 2000, CKI's total borrowings were 10.546 bln hkd, which included Hong Kong dollar syndicated loans of 3.80 bln hkd, foreign currency bank borrowings of 6.628 bln hkd, loans denominated in yuan of 113 mln hkd and Canadian dollar debentures worth 5 mln hkd. CKI said 34 pct of these borrowings are payable in 2001, 37 pct in 2002 and the remainder between 2003 and 2005. At end-2000. the company had unused borrowing facilities totalling 311 mln hkd. Of these unused facilities, 95 pct will expire in 2001 and the remainder in 2003. Cheung Kong Infrastructure said it believes its bankers will continue to support the company's future financing needs given the positive reception it received when it sought new financing facilities in 2000.

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