CLP's net profit drops by 11pc

CLP(0002) reported on Thursday that net profit declined by 11 percent year-on-year to HK$10.47 billion, affected mostly by Australia and the mainland’s weaker performance.

The company declared a fourth interim dividend growth of 4.0 percent to HK$1.31 per share, bringing a total dividend last year to HK$3.2 per share, an increase of 1.6 percent from 2024.

Australia's earnings dropped by 86 percent year-on-year to HK$85 million as intense competition and low margins continue to affect the retail business.

In the mainland, earnings decreased by 14 percent year-on-year to HK$1.60 billion as financial performance was affected by lower contributions from the Yangjiang nuclear power station, and market competition reduced the average tariff. 

The company said Hong Kong has maintained its strong business performance last year, with earnings growing 7 percent year-on-year to HK$9.54 billion.

Over the years, CLP has built 2.88 million smart meters for residential and small to medium enterprises customers in Hong Kong and has continued to support its customers through HK$270 million funding from the CLP community energy saving fund amid an uncertain economic situation.

CLP said it will continue investing in Hong Kong’s electricity system to support overall growth, develop the Northern Metropolis, and help the government to transition to a low-carbon economy.

Its revenue slid 3 percent year-on-year to HK$88.02 billion.

CLP chief executive Chiang Tung-keung said that although an unstable geopolitical relationship will affect the oil price, as international fuel prices decrease slightly, the average net tariff this year has dropped 2.6 percent.

He added that the company will gradually lower the fuel price in March through its fuel cost adjustment mechanism.

Gloria Leung