HK Electric Investments (2638) warned of inevitable “significant upward pressure” on the fuel clause charge in the second half of the year, as it reported a flat distributable income of HK$1.4 billion for the six months ended June.
While the net tariff, which comprises the basic tariff and the fuel clause charge, inched down in the period, the soaring international fuel prices driven by the Middle East war since March will eventually be felt by customers and could persist for some time, said the company that runs HK Electric, one of Hong Kong’s two electricity providers.
With gas-fired generation accounting for nearly 70 percent of its total output, the utility firm’s foremost priority was to maintain the reliability of electricity supply by securing sufficient fuel supplies, particularly natural gas, in an increasingly volatile market environment, while complying with statutory emission limits and minimizing the impact on tariffs, it said.
HKEI declared an interim distribution of 15.94 HK cents. Profit for the period remained unchanged at HK$1 billion in the first half of 2026, despite a 6.7 percent rise in revenue to HK$5.94 billion.
Earnings before interest, taxes, depreciation and amortization grew by 8 percent to HK$4.3 billion.
Electricity sales in the period increased by 2 percent to HK$5.91 billion, driven by robust demand from the commercial sector, primarily due to warmer weather and an improving economy.
