HKELECTRIC-SS (02638) has released its interim results for the first half of 2026, showing a 6.68% year-on-year increase in revenue to HK$5.939 billion.
The company's profit attributable to stapled security holders reached HK$1.003 billion, up 0.2% from the same period last year, with earnings per stapled security at 11.35 HK cents. An interim distribution of 15.94 HK cents per stapled security has been declared.
Electricity sales in the first half of 2026 rose 2% compared to the corresponding period last year, primarily attributed to relatively warmer weather and improved economic conditions, which drove higher electricity demand from commercial customers.
In January 2026, the average net tariff of HKELECTRIC-SS stood at 163.3 HK cents per kilowatt-hour. The net tariff comprises a base tariff and a fuel adjustment charge, with the monthly adjustment mechanism of the fuel charge incorporating a lag effect. By the end of June 2026, the net tariff had decreased to 159.2 HK cents per kilowatt-hour, reflecting lower fuel costs secured before the outbreak of conflict in the Middle East earlier in the year.
Since March 2026, international fuel prices have remained at elevated levels. Consequently, the fuel adjustment charge is expected to rise significantly in the second half of the year and remain higher for a sustained period. Anticipating this increase in net tariffs, HKELECTRIC-SS has allocated funds from its "Smart Power Care Fund" to provide a "Special Electricity Allowance" of 8 HK cents per kilowatt-hour for residential customers with monthly consumption of 450 kilowatt-hours or less, covering the period from August to October 2026. These eligible customers represent approximately half of the company's total residential customer base.
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