CLP Holdings (00002) CEO Chiang Tung-keung stated during the half-year results online conference that the current monthly fuel cost adjustment mechanism has a lag effect. It adjusts based on actual fuel prices from the past three months to mitigate the impact of electricity price fluctuations.
From January to August this year, oil prices have been highly volatile. The cumulative adjustment in Hong Kong electricity prices is approximately 4%, showing a gradual increase. Based on the current oil price trend, fuel costs may rise in the short term, but the specific situation at the end of the year will depend on oil price movements at that time. The group will continue to reflect this on a "pay-as-you-go" basis through the mechanism each month.
Chiang added that the group has launched a three-month special fuel cost rebate (from August to October), providing eligible residential customers with a relief support of 8 HK cents per kilowatt-hour. It is estimated that about half of residential customers will benefit. The group also adopts a diversified procurement strategy, hoping to reduce the impact of international fuel price fluctuations.
Regarding the development of the Northern Metropolis, Chiang stated that the group has already made preparations for the power grid backbone of the area. It will coordinate with the government's development pace and provide electricity on time. The current five-year development plan is expected to invest HK$2.5 billion in the Northern Metropolis power grid construction. To support the development of the innovation and technology industry, especially the demand from data centers, eight substations have already been put into operation. A total of 18 substation projects are planned to supply power to data centers.
Regarding the group's Australian business, EnergyAustralia's power generation business was affected by a weaker wholesale electricity market environment in the first half. Chiang noted that due to recent mild weather and an increase in energy storage projects, energy demand has been lower than expected, which has also lowered electricity prices. This situation may persist in the short term and could put pressure on the Australian business. However, as its coal-fired power plants gradually exit the market, the value of the group's flexible power generation and energy storage project assets in the region is expected to improve. The rapid development of local data centers is expected to drive electricity demand, and he is optimistic about this. He added that the group is also actively seeking to invest in more zero-carbon energy projects outside Hong Kong, including renewable energy projects. It already has over 50 such projects in mainland China and will continue to expand. At the same time, it is actively exploring zero-carbon energy investment opportunities in Southeast Asia, including Taiwan (China), Vietnam, and Laos.
Regarding dividend policy, Chiang reiterated that the group aims to provide a stable and continuously growing dividend based on sustainable business growth. When asked if the company would issue a special dividend to mark its 125th anniversary this year, Chiang stated that the dividend policy is decided by the board of directors, and as of now, there are no arrangements for issuing a special dividend. CLP Holdings released its 2026 interim results, showing that the group achieved revenue of HK$42.856 billion, flat year-on-year. Profit attributable to shareholders was HK$5.997 billion, an increase of 6.63% year-on-year. Earnings per share were HK$2.37, and an interim dividend of HK$0.63 per share was declared.
Comments