HK Electric Investments and HK Electric Investments Limited (2638) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 increased to HK$5,572 million, up 6.6% year-over-year, while profit attributable to Share Stapled Unit holders declined to HK$947 million from HK$982 million.

• Interim distribution per Share Stapled Unit maintained at HK15.94 cents, totaling HK$1,408 million.

• Major progress in decarbonisation with the launch of a new 380-MW gas-fired unit (L12), retirement of two coal-fired units, and smart meter rollout reaching 71% of customers.

• Ongoing investments in smart grid, EV charging infrastructure, and sustainability initiatives.

• Supply reliability exceeded 99.9999%, with less than 0.5 minutes of unplanned interruption per customer.

Financial highlights

• EBITDA for the period was HK$3,989 million, up from HK$3,739 million year-over-year.

• Earnings per Share Stapled Unit was 10.72 cents, compared to 11.11 cents in 2023.

• Distributable income for the period was HK$1,408 million, unchanged from 2023.

• Operating profit reached HK$2,490 million, up from HK$2,299 million year-over-year.

• Net finance costs increased to HK$750 million from HK$707 million in 2023.

Outlook and guidance

• Five-year Development Plan (2024–2028) targets HK$22 billion in decarbonisation infrastructure investments.

• Construction of new gas-fired unit L13 underway, with commissioning scheduled for 2029.

• Commitment to phase out all coal-fired generation by 2035 and explore zero-carbon electricity imports and green hydrogen.

• Focus on enhancing system resilience against extreme weather and leveraging AI for productivity.