HKEX | 002
CLP total earnings decreased by 4.9% last year, final dividend being HK$1.19
CLP (002) announced annual result for last year, with the group operating earnings increased by 5.1% to HKD 13.982 billion, mainly reflecting robust performance from businesses outside HK and impact from a lower permitted rate of return in HK from 1 October 2018. Operating earnings from local electricity business in HK decreased by 3.4% to HKD 8.558 billion, while operating earnings from the business outside HK increased by 29.6% to HKD 6.199 billion. Total earning decreased by 4.9% to HKD 13.55 billion. Fourth interim dividend was HKD 1.19 per share.
The total earning decreased largely due to favorable one-off items in 2017. Sales of electricity within HK rose slightly by 1.5% to 33,662 gigawatt hours (GWh) compared with that of the previous year. The increase was driven mainly by demand from the commercial, and infrastructure and public services sectors. Sales to mainland China decreased by 58.5% to 556 GWh as the contract to supply electricity to Shekou in southern China expired in June 2018. As a result, total electricity sales in 2018 saw a marginal decrease of 0.8% to 34,218 GWh.
CLP's FiT scheme, which enables customers to generate their own renewable energy, receives over 1,400 applications up to the end of 2018. For those customers who want to support the development of renewable energy but do not have the opportunity to build their own system, they can purchase REC's which represent locally generated renewable energy starting from January 2019. CLP will deliver 2018-2023 development plan in support of the government's carbon reduction targets and environmental policies.