CLP (2) H2 2025 earnings summary

Executive summary

• Strong core performance in Hong Kong, supported by the Development Plan and operational excellence, offset market pressures and weaker results in the Chinese Mainland and Australia.

• Major projects completed include smart meter rollout in Hong Kong, commissioning of large wind projects in China and India, and ongoing investments in decarbonisation and digital transformation.

• Cost efficiencies, platform strengthening, and disciplined capital allocation maintained a strong balance sheet and increased dividends by 1.6%.

• Strategic focus on low-carbon growth, digital innovation, and expanding renewables across Asia-Pacific.

• Board increased total dividend to HK$3.20 per share, up 1.6% year-over-year, reflecting confidence in performance.

Financial highlights

• Operating earnings before fair value movements fell 2.4% to HK$10,685 million; total earnings dropped 10.8% to HK$10,468 million, mainly due to one-off items.

• Revenue decreased 3.2% to HK$88,018 million, primarily from lower generation volumes in Australia.

• EBITDAF was HK$25,747 million; capital investment declined 13% to HK$16,418 million.

• Free cash flow increased to HK$22.6 billion, driven by strong EBITDAF and fuel cost recovery.

• Net debt rose to HK$57.9 billion; net debt/total capital stable at 33.0%, with HK$25.5 billion undrawn bank facilities.

Outlook and guidance

• Hong Kong: Focus on delivering safe, reliable electricity, executing a HK$52.9 billion development plan, and supporting zero-carbon goals and digital innovation.

• Chinese Mainland: Stable outlook for nuclear and thermal, renewables to benefit from long-term tariffs, but facing market-based pricing risks and increased competition.

• Australia: Emphasis on flexible capacity, retail transformation, and adapting to regulatory reforms and volatile prices.

• India: Maintain 1 GW/year growth, targeting 9 GW non-carbon capacity by 2030, with capital recycling and new renewable, transmission, and AMI projects.