CLP net profits jump sixfold, dividend unchanged
Power giant CLP on Monday said shareholders won't see higher payouts despite a sixfold increase in full-year net profits last year. The company’s net profits skyrocketed to over HK$6.6 billion, compared with HK$924 million in 2022.  CLP said core Hong Kong and mainland businesses did well. Its international operations also improved, though it wrote down the value of its Australian business. The company's revenue took a hit, however, dropping to HK$87.17 billion in 2023 from the previous year's HK$100.66 billion. The company declared a fourth interim dividend payment of HK$1.21 per share, the same as the year before. That brought total dividend in 2023 to HK$3.10, also unchanged from 2022.  “The board has adopted a position to strike a balance between a level of cautiousness, so as not to increase the dividend and at the same time maintaining commitments to our shareholders, maintaining the dividend at the same level,” said CLP's Chief Financial Officer Nicolas Tissot. Meanwhile, CLP's Chief Executive TK Chiang said the company hopes to further reduce prices for customers this year, although much would depend on the international energy market.  He noted that the cost per unit of electricity will be reduced by one cent from next month to HK$0.453, following a tariff reduction in January. “If the existing international fuel market continues to stabilise, then I expect the fuel costs to continue to ease, and hopefully this will reduce the tariff pressure this year,” Chiang said. He added that as Hong Kong transitions to become a low-carbon economy and makes use of more clean and renewable energy, fuel prices could become more stable. “Because for nuclear or other renewable energy, they don’t need fossil fuel supplies, so if we have a higher proportion of green energy, I think the sensitivity of the tariff adjustments due to the international fuel price volatility will be less. And that will also help reduce the volatility in the international fuel markets,” Chiang said.