CLP Holdings (CLP) delivered solid first-half FY2026 results despite challenging energy markets, demonstrating the defensive qualities of its regulated Hong Kong utility and the benefits of portfolio diversification.
Revenue and earnings • Group revenue was broadly flat at HK$42.86 billion (H1 2025: HK$42.85 billion). • Operating earnings before fair-value movements increased 9.7% to HK$5.73 billion, helped by higher permitted returns in Hong Kong, improved overseas contributions and lower corporate costs. • After a HK$0.32 billion gain from the sale of the Jhajjar coal plant in India and other one-off items, total earnings rose 6.6% to HK$5.99 billion.
Segment performance (operating earnings before fair-value movements) • Hong Kong energy business: HK$4.74 billion, up 6.0%, driven by growth in average Scheme of Control (SoC) net fixed assets and lower interest costs. • Chinese Mainland: HK$0.90 billion, +3.3%, underpinned by stronger Daya Bay nuclear output and new wind contributions, partly offset by tariff pressure and curtailment. • Australia: HK$0.22 billion, +33.5%; retail margin improvement outweighed weaker wholesale prices and higher fuel costs. • India: HK$0.11 billion, +32.9%, aided by transmission asset performance and Jhajjar disposal; Apraava Energy is now 100% non-carbon. • Taiwan & Southeast Asia: HK$0.07 billion, +273.7%, reflecting better results at Ho-Ping Power Station.
Cash and balance-sheet highlights • Net debt/total capital ratio edged up to 34% from 33% at end-2025. • Liquidity stood at HK$19.50 billion (HK$15.10 billion undrawn committed facilities and HK$4.40 billion cash). • Fixed-rate debt represented 50% of total borrowings. • CLP China issued its inaugural RMB1.00 billion (HK$1.20 billion) three-year Panda bond at 1.85% to fund renewables in line with the Climate Action Finance Framework.
Shareholder returns • The board declared a second interim dividend of HK$0.63 per share, unchanged year-on-year, payable on 15 September 2026. • Aggregate dividends for the first half amount to HK$1.26 per share, matching the prior-year level.
Operational and strategic developments • Hong Kong electricity sales rose 3.6% to 17,038 GWh, with data-centre demand up 11.8%; two new data-centre substations (260 MVA total) were commissioned. • CLP Power signed an MoU with CNOOC to deepen cooperation on gas and low-carbon solutions and completed an upgrade of the Clean Energy Transmission System to enable more non-carbon imports from the mainland. • EnergyAustralia brought the 200 MW/800 MWh Orana battery online and advanced multiple battery and pumped-hydro projects, but faces pressure from softer wholesale prices and lower retail tariffs in H2. • Apraava Energy exited coal generation, expanded its transmission footprint and began building a 300 MW wind farm in Karnataka, India. • Two wind farms (150 MW) in Guizhou and Yunnan entered commercial operation; additional 425 MW wind capacity in Shandong started pre-commissioning.
Outlook Management anticipates continued fuel-price volatility and competitive wholesale markets, but expects the regulated Hong Kong business, ongoing cost discipline and growth in renewables and flexible capacity to support earnings resilience. CLP pledged to advance grid investments for Hong Kong’s Northern Metropolis, maintain diversified fuel sourcing and pursue disciplined expansion in renewables, storage and transmission across Asia-Pacific.
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