CLP (2) H2 2025 earnings summary

Executive summary

• Strong core performance in Hong Kong, supported by the Development Plan and operational excellence, offset market pressures in mainland China and Australia.

• Ongoing investments in decarbonisation, digital transformation, and energy transition projects underpin future recurring earnings and value creation.

• Cost efficiency initiatives and platform strengthening maintained a robust balance sheet, enabling a 1.6% dividend increase to HK$3.20 per share.

• Resilient Hong Kong results offset weaker contributions from Australia and the Chinese Mainland, which faced market and regulatory headwinds.

• Strategic focus on low-carbon growth, digital innovation, and disciplined capital allocation across Asia-Pacific.

Financial highlights

• Operating earnings before fair value movements fell 2.4% to HK$10,685 million; total earnings dropped 10.8% to HK$10,468 million, mainly due to one-off items.

• Consolidated revenue declined 3.2% to HK$88,018 million, primarily from lower generation volumes in Australia.

• EBITDAF was stable at HK$25,747 million; capital investment decreased 13% to HK$16,418 million.

• Free cash flow increased by HK$1.6 billion to HK$22.6 billion, driven by strong EBITDAF and fuel cost recovery.

• Net debt rose to HK$57.9 billion, with a net debt/total capital ratio of 33.0% and strong liquidity from HK$25.5 billion undrawn facilities.

Outlook and guidance

• Hong Kong to deliver safe, reliable electricity, execute a HK$52.9 billion development plan, and support zero-carbon goals, with rising demand from data centres and infrastructure.

• Mainland China to expand renewables, manage market-based pricing risks, and benefit from long-term tariffs and policy support.

• Australia to optimize generation, improve retail margins, and deliver over 1 GW of new flexible capacity by 2027 amid regulatory reforms.

• India’s Apraava Energy targets 9 GW of non-carbon capacity by 2030, focusing on decarbonization, capital recycling, and sustainable growth.