Power Assets (6) H1 2024 earnings summary

Executive summary

• Profit attributable to shareholders rose 2% year-over-year to HK$3,006 million for the six months ended 30 June 2024, despite high global interest rates and new UK price controls.

• Interim dividend maintained at HK$0.78 per share, payable on 24 September 2024.

• Completed two strategic UK acquisitions: 20% stake in Phoenix Energy and acquisition of UU Solar, expanding low-carbon and renewable energy assets.

• Announced third UK acquisition in August 2024: 20% stake in a UK onshore wind farm portfolio for £350 million, expected to close in September and provide immediate returns.

• Leadership transition with a new Chairman effective 1 April 2024.

Financial highlights

• Earnings per share increased to HK$1.41 from HK$1.39 year-over-year.

• Net assets stood at HK$86,563 million as of 30 June 2024, down from HK$88,752 million at year-end 2023.

• Group revenue was HK$454 million, primarily from interest income and dividends; share of revenue from joint ventures was HK$9,258 million.

• Operating profit was HK$489 million, compared to HK$750 million in the prior year.

• Total comprehensive income dropped to HK$2,159 million from HK$5,783 million, mainly due to negative exchange differences.

Outlook and guidance

• Most regulatory resets for operating companies are finalized, providing a stable and predictable revenue environment for the medium term.

• Focus remains on global investment opportunities in mature, well-regulated energy markets, prioritizing decarbonization and stable returns.