CLP Holdings earnings fell 23.2% YoY in H1

Its earnings reached HK$4,615m from HK$6,010m. 

CLP Holdings Limited recorded a 23.2% year-on-year (YoY) decrease in total earnings in the first half to HK$4,615m from HK$6,010m.

This came after the settlement in March 2021 of the litigation from the disposal of Iona Gas Plant in 2015 and the provision ensuring safe operations at the Yallourn coal mine in Australia after exceptional rainfall in June.

The group's operating earning dipped 7% YoY to $5,698m from $6,129m in the same period last year due to the lower earnings from Mainland China and Australia, which saw a decrease of 23.2% and 29.9% YoY, respectively, despite a “solid performance” in Hong Kong where earnings rose 3.6%.

“The Board is confident in the group’s ability to remain resilient through the pandemic and continue with its strategy of decarbonisation and digitalisation moving forward,” CLP Group Chairman Michael Kadoorie said.

He added that the first and second interim dividends have been maintained at HK$0.63 per share which is the same from the same period last year.

Its consolidated revenues, on the other hand, increased 5.2% to $40,729m YoY, while profit declined to HK$5,133m from HK$6,513m.

In its home market in Hong Kong, CLP is focusing on decarbonisation, engaging in discussion with the Hong Kong government to contribute to a “preliminary decarbonisation roadmap” for its target to become carbon neutral by 2050.

“It will continue to engage with the government and stakeholders on the best ways to achieve this goal, while maintaining a world-class electricity supply reliability,” the firm said.

“In the longer term, CLP is exploring opportunities in the development of zero-carbon hydrogen technologies and supply chains, transitioning gas-fired generation infrastructure to the use of green hydrogen when supplies of the carbon-free fuel are commercially available in sufficient volumes,” it added.

Kadoorie said that they are accelerating exploration of opportunities both independently and in partnership, with the decarbonisation strengthening the investment potential in the Greater Bay Area.

Its subsidiary in Australia, EnergyAustralia has also reached an agreement with the State Government of Victoria to retire the Yallourn coal-fired power station to 2028. It also announced the construction of one of the largest battery facilities there to allow more renewable energy to be absorbed in Victoria’s energy system.

The subsidiary will also build a new power station that is capable of using a blend of green hydrogen and natural gas in New South Wales, the first power station in Australia that is committed to offsetting its carbon emissions.

“While the initiatives in Hong Kong, the Greater Bay Area and Australia encapsulate our efforts in decarbonisation, they also point to the importance of alignment with policymakers, and long-term planning to ensure energy transition is carried out in an orderly manner taking care of the interests of a wide array of stakeholders,” he said.