CLP HOLDINGS(00002)2024-08-05 04:07Financial Performance - In the first half of 2024, CLP Holdings reported an operating profit of HKD 5,683 million, a 22.0% increase, driven by strong performance across its businesses and improved earnings from EnergyAustralia[3]. - Total profit for the first six months rose to HKD 5,951 million, compared to HKD 5,060 million in the same period last year, reflecting a 17.6% year-on-year growth[4]. - The group's consolidated revenue slightly increased by 1.8% to HKD 44,086 million[3]. - Operating profit for the first half of 2024 increased by 22.0% to HKD 5,683 million, driven by strong performance across various businesses and improved profitability from EnergyAustralia[9]. - Total profit for the first six months of 2024 grew to HKD 5,951 million, reflecting a 17.6% increase compared to the same period in 2023[10]. - The company reported a basic and diluted earnings per share of HKD 2.36 for the first half of 2024, compared to HKD 2.00 in the same period of 2023[43]. - The total comprehensive income for the period was HKD 6,330 million, an increase from HKD 5,144 million in the previous year[44]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.63 per share, consistent with the previous year[5]. - The company announced an interim dividend of HKD 0.63 per share for the second period of 2024, consistent with the dividend of HKD 0.63 per share in 2023, to be distributed on September 13, 2024[75]. - The dividend will be distributed based on the currently issued shares totaling 2,526,450,570[75]. Energy Transition and Sustainability Initiatives - CLP Holdings is focusing on low-carbon energy solutions, with a new 600 MW gas-fired unit D2 at the Lung Kwu Tan Power Station now operational[6]. - The company is committed to enhancing its financial strength and strategic position in the Australian market to contribute to the clean energy transition[7]. - CLP Holdings is actively pursuing opportunities in green hydrogen production to support Hong Kong's goal of achieving net-zero emissions by 2050[6]. - The company is committed to investing in opportunities arising from the transition to a net-zero future, aiming to provide affordable, reliable, and sustainable energy[8]. - The company aims to reduce greenhouse gas emissions intensity from electricity sold by tightening the target from 0.3 kg CO2 equivalent per kWh to 0.26 kg CO2 equivalent by 2030[36]. - The company has not recorded any environmental violations leading to fines or prosecutions in the first half of 2024[35]. - The company has received multiple awards for its sustainability reporting, including the Gold Award at the Asia Annual Report Awards for six consecutive years[38]. Renewable Energy Projects - In mainland China, existing renewable energy projects saw a slight increase in generation, with 300 MW of new projects under construction, bringing total wind and solar capacity to 450 MW[7]. - Apraava Energy in India secured multiple low-carbon project development rights, including a 350 MW renewable energy project and installation of over 1.7 million smart meters[7]. - EnergyAustralia is developing flexible generation capacity projects and advancing significant energy storage projects in Victoria and South Australia[7]. - CLP's renewable energy development in mainland China remains robust, with solar and hydropower output increasing due to new projects, despite some operational challenges at nuclear plants[19]. - CLP China has initiated construction on 300 MW of solar and wind projects, including a 100 MW wind farm in Guizhou and two solar projects in Jiangsu, expected to be operational by mid-2025[20]. - Apraava Energy is actively developing renewable energy projects, including a 350 MW capacity and nearly 200 km of transmission lines, to meet India's growing energy demand[27]. - Apraava Energy successfully secured a 300 MW solar PV project in Rajasthan, with construction expected to begin in the second half of this year[28]. - The company has also won a 50 MW solar project in the same state, with construction anticipated to start after receiving approval later this year[28]. Customer and Market Developments - Electricity sales in Hong Kong rose to 16,743 million kWh, a 2.6% increase year-on-year, supported by economic recovery and higher demand due to warmer weather[12]. - The reliability of electricity supply remains at a world-class level of 99.999%, with ongoing efforts to enhance supply reliability and minimize public impact during incidents[14]. - Average net electricity price was reduced by 1.6% in the first half of 2024, in response to declining international fuel prices[15]. - Profit from the Hong Kong energy business increased by 2.8% to HKD 4,165 million, while profit from mainland China decreased by 28.0% to HKD 988 million due to planned outages[10]. - The Indian segment saw a significant profit increase of 59.8% to HKD 203 million, attributed to higher electricity prices and stable contributions from renewable energy projects[10]. - EnergyAustralia's retail customer count decreased by 23,200, approximately 1%, by June 2024 compared to December 2023, although customer satisfaction scores improved[23]. Operational Efficiency and Safety - The company is implementing a comprehensive review of its power supply system management to reduce electricity incidents and improve response times[14]. - The company is committed to enhancing workplace health and safety, with a strategy update planned by the end of the year to strengthen health and safety management systems[34]. - The total recordable injury rate and lost time injury rate slightly increased, reflecting a rise in incidents during maintenance shutdowns[32]. - The lost time injury rate for employees increased to 0.15 in the first half of 2024 from 0.03 in the same period of 2023, while the total recordable injury rate rose to 0.26 from 0.08[33]. Financial Position and Capital Management - The company reported a decrease in cash and cash equivalents to HKD 2,929 million from HKD 5,182 million, a decline of 43.3%[46]. - The bank loans and other borrowings increased to HKD 48,443 million from HKD 44,943 million, an increase of 7.1%[47]. - The group maintained a strong liquidity position with HKD 27.3 billion in undrawn bank loan facilities and HKD 2.9 billion in bank balances as of June 30, 2024[66]. - The group secured a total loan facility of HKD 5.3 billion during the first half of 2024 for refinancing and business needs[66]. - The group’s net debt to total capital ratio increased to 34.0% as of June 30, 2024, up from 31.6% at the end of 2023[68]. - Funds from operations (FFO) interest coverage ratio improved to 9 times for the six months ended June 30, 2024, compared to 7 times in the same period of 2023[68]. Governance and Compliance - The board of directors was updated with new members, receiving strong support from shareholders during the 2024 annual meeting[69]. - The company maintained compliance with its corporate governance code, with only one deviation regarding the publication of quarterly financial results[71]. - The audit and risk committee submitted five audit reports and three special review reports, with no significant issues identified affecting the financial statements[73].