CLP's Profit Falls 89 Percent To HK$924m

CLP Holdings' annual profit has shrunk by more than 89 percent to HK$924 million, with the company pointing to operational challenges in Australia.

The power firm said its performance in its core markets of Hong Kong and the mainland was strong, however, with an increase of HK$800 million in combined operating earnings to HK$10.9 billion.

In its 2022 financial statement, CLP also pledged to support decarbonisation efforts in both places and said it may import more zero-carbon energy to the SAR, including nuclear and renewable power.

The company also said the increased use of natural gas and the phasing out of coal will help reduce its greenhouse gas emissions in the short-term.

"In the long-term, zero-carbon electricity generation from offshore wind farms and nuclear plants combined with the exciting potential of hydrogen will steer Hong Kong towards a future of sustainable growth, clearer skies and brighter tomorrows," the company added.

Chairman Michael Kadoorie said CLP is working with the administration on the company's development plan for 2024 to 2028.

"This is a defining moment as the required investments will represent a key step in Hong Kong’s de-carbonisation roadmap beyond 2035 and towards the government's target of achieving carbon neutrality before 2050," Kadoorie said in a statement.

Explaining the fall in profit, CLP said the operating environment in Australia remains competitive and there is high government intervention in power companies.

"In an unprecedented move, the Australian Energy Market Operator suspended spot trading in the National Electricity Market for more than a week in June following outages at major Australian coal-fired power stations and increased power demand caused by cold weather," it said.

CLP is offering a fourth interim dividend of HK$1.21 per share, making total dividends for 2022 stand at HK$3.10 per share, the same amount as in 2021.