CLP Holdings (00002): Fuel costs may be on the rise in the short term
The Zhitong Finance App learned that Jiang Dongqiang, CEO of CLP Holdings (00002), said at the half-year results online conference that the current monthly fuel fee adjustment mechanism has a lagging effect and will be adjusted based on actual fuel prices over the past three months to mitigate the impact of fluctuations in electricity prices. From January to August of this year, oil prices fluctuated greatly. The cumulative adjustment of electricity prices in Hong Kong was about 4%, showing a slow rise. According to the current trend in oil prices, fuel costs may be rising in the short term, but the specific situation at the end of the year still needs to change according to the oil price changes at that time. The Group will continue to reflect it in the relevant mechanism every month in the form of “actual reporting and actual sales”.
Jiang Dongqiang added that the Group has introduced a special fuel rebate for a period of three months (August to October) to provide eligible residential customers with relief support of 8 Hong Kong cents per kilowatt hour. It is expected that about half of residential customers will benefit. Meanwhile, the Group is also adopting diversified procurement strategies, hoping to reduce the impact of changes in international fuel prices.
Referring to the development of the northern metropolitan area, Jiang Dongqiang said that the power grid backbone in the northern metropolitan area has been well deployed, and the future will match the government's development pace to provide electricity in a timely manner. The current 5-year development plan is expected to invest HK$2.5 billion in the construction of the Beidu Power Grid. In order to meet the development of the innovation and technology industry, especially the needs of data centers, 8 substations have been put into operation; a total of 18 substation projects have been planned to supply power to data centers.
The Group's Australian business EnergyAustralia's power generation business in the first half of the year was affected by the weakening environment in the wholesale electricity market. Jiang Dongqiang pointed out that due to the recent mild climate and the increase in energy storage projects, energy demand was lower than expected, which also lowered the relevant electricity prices. The situation continued in the short term, which may put pressure on the Australian business. However, with the gradual withdrawal of its coal power plants from the market, the asset value of flexible power generation and energy storage projects held by the Group is expected to increase; the rapid development of local data centers is expected to drive electricity demand, and this is optimistic.
He added that the group is also actively seeking to invest in more zero-carbon energy projects outside of Hong Kong, including renewable energy projects. Currently, there are more than 50 in the mainland and will continue to expand in the future; at the same time, it is actively exploring zero-carbon energy investment opportunities in Southeast Asia, including Taiwan Province of China, Vietnam and Laos.
In terms of dividend policy, Jiang Dongqiang reiterated that the Group's goal is to provide a stable and sustainable dividend based on continuous business growth. As to whether the group will pay special interest on its 125th anniversary this year, Jiang said that all dividend policies are made by the board of directors. As of now, there are no relevant arrangements for paying special interest.
According to CLP Holdings's 2026 interim results, the Group obtained revenue of HK$42,856 billion, the same as the previous year; profit attributable to shareholders of HK$5.997 billion, an increase of 6.63% over the previous year; profit per share of HK$2.37, and plans to pay an interim dividend of HK$0.63 per share.