CGN New Energy Holdings (1811) H1 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 was US$982.3 million, down 19.7% year-over-year, mainly due to lower power generation, tariffs, and fuel margin in Korea, and increased grid curtailment in PRC wind projects.

• Profit attributable to equity shareholders was US$183.5 million, a decrease of 7.3% compared to the same period last year.

• Operating profit fell 11.8% to US$303.9 million, primarily due to reduced fuel margin in Korea and increased grid curtailment in PRC wind projects.

• EBITDA for the period was US$485 million, down from US$519 million year-over-year.

• No interim dividend was declared for the period.

Financial highlights

• Operating expenses decreased by 22.8% to US$678.4 million, mainly due to lower gas costs in Korea.

• Finance costs dropped 17.4% to US$91.6 million, reflecting reduced average bank borrowings.

• Net debt/equity ratio improved to 3.23 from 3.30 at year-end 2023.

• Cash and cash equivalents declined to US$121.9 million, mainly due to increased investing activities.

• Other income rose to US$20.1 million, mainly from compensation income in Korea.

Outlook and guidance

• The company aims to maintain steady growth in new operating capacity for 2024, focusing on high-quality development, safety, innovation, and project execution.

• Plans to accelerate new energy project construction and optimize project conversion.

• Focus areas include enhancing safety, optimizing project planning, and accelerating new energy project development.

• Plans to continue innovation in offshore wind, energy storage, and digital operations.

• No significant events after the reporting period.