CLP Returns To Profitability Amid Covid Outbreak

CLP Holdings returned to the black in the first half of 2020, and said the business impact of the coronavirus impact has been less severe compared with many other sectors.

Releasing its interim financial results on Monday, one of the two power firms in Hong Kong posted a profit of more than HK$6 billion in the six months ending June.

That's a rebound from a loss of more than HK$900 in the first half of 2019.

During the period under review, more than half of the profit came from Hong Kong, on the back of rising electricity demand from the residential sector as people spent more time at home due to the Covid-19 pandemic.

While overall electricity sales saw a modest 1.2 percent drop, the number of customers rose by 27,000 to 2.65 million.

Group CEO Richard Lancaster said CLP did well in the first half of the year amid a difficult operating environment. "We continued our de-carbonisation journey, making good process in key capital projects despite the challenges of Covid-19."

Group director Betty Yuen said she doesn't see a big negative impact on the company from Covid-19.

"Compared with other industries, the impact on us is relatively smaller," she said.

"For residential users, the energy consumption has increased a lot, and this can offset the decline in other sectors. So in the second half of the year, if the pandemic is under control, then the impact on us, overall speaking, will not be too big."

CLP is offering a second interim dividend of HK$0.63.