Despite the rising oil price, Hutchison Whampoa Chairman Li Ka-shing said the company's 35 percent-controlled oil vehicle Husky Energy remained unaffected.

Li believed the business of Husky Energy would hit a historical high this year.

Asked whether the company will make a spin-off of the segment, he said: "We have nothing to reveal in this respect in current stage, but we'll regularly review the business in consideration of the shareholder's benefits."

The tycoon also added that the company's port business was hit by the snowstorm in the Chinese spring festival, but he remained positive that the segment could reap a positive growth in 2008.

The company deputy chairman, Victor Li, son of Li Ka-shing, shrugged off the speculation that the newly-established water arm Hutchison Water would pose a competition with the water project of CKI (Cheung Kong Infrastructure).

"CKI has enormous experience in water projects in Australia and Hutchison Water is a technology firm. The two companies can have synergy rather than pose a direct competition," he said.

"We will shift our focus on developing water projects when we don't need to pump further capital on the 3G business," said the senior Li.

As for the 3G business, the company's managing director, Canning Fok said the monthly EBIT (earnings before interest and tax) of its 3G business would turn to black in the second half.

(HK Edition 05/23/2008 page2)