Mainland-based natural gas distributor China Gas Holdings Ltd (China Gas) made its first interim dividend payment since the company establishment in 2002 as the company's interim net profit soared 1.16 times to HK$808 million ($104.26 million) for the six months ended September.

China Gas recommended an interim dividend of HK$0.02 a share, representing the first interim dividend payment in the last 10 years as the company's cash flow is regarded as sufficient to enable it to sustain a clear and stable dividend payment in the future.

"The company regards a dividend payout ratio of 30 percent would be appropriate in the future and it hopes that it can consistently maintain this ratio," China Gas Deputy Managing Director Eric Leung said on Wednesday at an annual press conference to announce its results.

China Gas reported that revenue was up 8.3 percent to HK$8.56 billion compared to a year earlier.

China Gas President Liu Ming Hui attributed the interim net profit surge to the continued expansion of the city's gas projects, the higher volume of gas sold and the increased number of connected users.

Looking ahead, Liu noted that the company will focus its strengths on consolidating the lower stream natural gas distribution networks through the strategic partnership agreement with China Petroleum & Chemical Corporation (Sinopec).

The two parties will form a joint venture company to develop the mainland liquefied petroleum gas retail market as well as the rapidly growing car and vessel natural gas refilling market in the country.

The agreement will also allow China Gas to have priority access to Sinopec's natural gas resources for China Gas' city gas.

oswald@chinadailyhk.com