HK Electric Investments and HK Electric Investments Limited (2638) H2 2024 earnings summary

Executive summary

• Achieved world-class supply reliability of over 99.9999%, with less than 0.5 minutes of unplanned interruption per customer in 2024.

• Commissioned a new 380-MW gas-fired unit (L12), raising gas-fired generation to 70% and retiring two coal units, reducing carbon emissions by 40% from 2005 levels.

• Electricity sales rose slightly to 10,150 GWh, supported by economic stabilization and warmer weather.

• Continued rollout of smart meters, reaching 80% of customers by end-2024, with full completion expected in 2025.

Financial highlights

• Revenue increased to HK$12,057 million for 2024, up from HK$11,406 million in 2023.

• EBITDA rose to HK$8,719 million (2023: HK$8,033 million); profit attributable to SSU holders was HK$3,111 million, comparable to HK$3,156 million in 2023.

• Total distribution per SSU maintained at HK32.03 cents (2023: HK32.03 cents), with interim and final distributions unchanged.

• Operating profit reached HK$5,488 million (2023: HK$4,976 million); EPS was 35.21 cents (2023: 35.72 cents).

Outlook and guidance

• Basic Tariff for 2025 set at HK122.9 cents/unit, up HK3.4 cents from 2024; Net Tariff in January 2025 up 0.9% year-over-year to HK167 cents/unit.

• About HK$75 million allocated for community support in 2025, focusing on carbon neutrality and energy saving.

• Ongoing investments in decarbonization, including new gas and oil-fired units, smart grid, and exploring zero-carbon electricity and green hydrogen.