Hong Kong utility CLP’s profit beats forecasts, expects return regime agreement before July
The electricity provider recorded net profit of HK$12.71 billion for 2016, down 18.8 per cent from 2015, but slightly above analysts’ forecasts
CLP Holdings, which controls the larger of Hong Kong’s two electricity suppliers, said it will seek out opportunities to expand in mainland China and India, as it posted a smaller than expected decline in net profit for last year.
The company recorded a net profit of HK$12.71 billion (US$1.64 billion) for the 12 months to December 31, down 18.8 per cent from 2015, after taking into account one-off items that affected comparability, it said in a filing to Hong Kong’s bourse on Monday.
The one-off items included a HK$6.62 billion gain from the sale of the Iona natural gas processing plant in Australia and a HK$1.48 billion asset impairment write-down in 2015, which were not repeated last year.
Group operating earnings rose 7.1 per cent to HK$12.3 billion.
Outside Hong Kong, we will continue to explore investment opportunities in mainland China and India – our two major growth markets – primarily in non-carbon generation
CLP was forecast to post a net profit of HK$12.1 billion, according to the average estimate of 13 analysts polled by Reuters.