CLP posts strong mid-term profit

CLP Holdings on Monday announced a mid-year net profit of HK$5.95 billion, a near 18 percent year-on-year increase. The power company said Hong Kong’s accelerated economic recovery, along with hotter weather, led to increased electricity demand. Its Australian and Indian business also improved, offsetting the impact of reduced electricity generation at its nuclear power plants on the mainland due to scheduled maintenance. CLP also pointed to various renewable energy projects on the mainland, saying they will be the key drivers for its profit in future. The company’s revenue rose to HK$44.09 billion, an almost 2 percent increase compared to the same period last year. It declared a second interim dividend of HK$0.63 per share, matching the first interim dividend of the year and unchanged from the year before. “We have always been generating revenue and dividends for the benefit of our shareholders. And we adopt a policy to have a reliable and consistent dividend with steady growth supported by sustainable business development,” said CLP's chief executive officer TK Chiang. “So we will continue to grow the business and if the condition approves, of course, we will try to adjust our dividend. But at the end of the day, the dividend will be approved by the board.” Chiang also said any further reduction in prices for consumers in the remainder of the year will depend on the international fuel market. “Because of the continued easing of the energy prices globally, we saw tariff reduction. From January up to August, the tariff for CLP's customers in Hong Kong saw a reduction of about 2 percent,” he said. “For the remaining part of the year, it will really depend on the international fuel price trend. If the fuel price continues to follow the current trend, there could be an opportunity for further adjustments.” Asked about progress in reviewing its power management system following several voltage dips this year, Chiang said the company is working on solutions to minimise the impact such incidents have on customers.