Martin Lee @ Sg
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City Gas – An Alternative Energy Source?

The other day, a contractor from City Gas came down to my house to do a site inspection. I had requested for him to check whether it was feasible to install the City Gas water heater and clothes dryer in my home.

The reason why I did so was that I was attracted to a recent promotion that City Gas was running. They were offering a package of the City Gas Water Heater and Dryer at $688 or the Heater at only $168.

According to the illustrations given, using a City Gas Heater in place of an electric one will cut the energy cost from about $30 to $10. This is a significant reduction.

Using a City Gas Dryer will reduce the cost from $5.73 to $3.88. This works out to be about 30+% reduction.

Unfortunately, the contractor deemed my house to be unsuitable for doing the installation. Thus, I was unable to proceed.

With energy costs increasing, people will become more conscious of such savings and there might be more people switching to the use of City Gas products.

The beneficiary of this would be course be City Spring, a listed infrastruture trust that is pretty much a dividend play. The current price of $0.775 offers a yield of about 8.3% p.a. The lowest price ever reached was about $0.70.

Of course, investors should remember to bear in mind the (ridiculous) performance fee structure, which is based upon the share price.

As a result of a spike in the share price in the past, the managers collected a huge performance fee. I can’t remember how much it was but I remembered it was a huge chunk of reported earnings.

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1 comment
CitySpring Rights Issue says 9 years ago

[…] who can forget the ridiculous performance fee that was once collected due to the spike in CitySpring’s share […]

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