Beijing Enterprises looks for gas tariff increase

Beijing Enterprises Holdings (0392.HK), the capital’s only supplier of natural gas, is looking to raise prices to offset higher costs, the South China Morning Post reported, citing the company’s vice chairman. Zhou Si said the company was planning to raise prices by at least 10% to maintain profitability; the price hike is pending government approval. This year’s exceptionally cold winter and spring led to a 26% rise in first-half gas sales to 3.6 billion cubic meters while revenue grew 26.7% to US$959 million. Company president Zhang Honghai noted that while it awaits a decision on its proposed tariff increase, its water supply unit will remain the core engine for growth, with net profit over the first half more than doubling to US$18.6 million due to Beijing’s ongoing water shortages.