CLP profit rises 6.6pc to HK$6b in first half

CLP Holdings reported a first-half profit of approximately HK$6 billion, marking a 6.6 percent increase from the same period last year, according to the power firm's Thursday announcement. The earnings growth was attributed to Hong Kong's stable business performance, improved results elsewhere, and a one-off gain of HK$318 million from the sale of an Indian power station.

The Hong Kong energy business saw a six percent increase, reaching HK$4.7 billion, while the mainland business grew 3.3 percent to around HK$900 million. Earnings from Australia and India also surged by over 30 percent. The company declared a second interim dividend of 63 Hong Kong cents per share, maintaining the same amount as the previous year.

Looking ahead, CLP expects global fuel price volatility to continue affecting electricity tariffs. CEO Chiang Tung-keung explained that the firm maintains a diversified fuel mix to mitigate the impact of elevated oil prices. The group will monitor the market and make monthly tariff adjustments. In Hong Kong, electricity tariffs rose by about four percent from January to August, significantly lower than oil price fluctuations.

Chiang noted that the company aims to adjust tariffs monthly, aligning with oil prices. From August to October, CLP is offering a three-month special fuel rebate, expected to benefit half of its customers.

The group plans to focus future investments on meeting electricity demand for artificial intelligence development. Under its five-year plan starting in 2024, CLP has committed HK$2.5 billion to the Northern Metropolis, with eight of 18 planned data centers already completed and operational. Additionally, the company is pursuing investment projects in Southeast Asian countries like Vietnam and Laos.