HK's CLP Holdings H1 net profit down 8.5 pct in absence of one-off gain

HONG KONG, Aug 12, 2008 (XFN-ASIA via COMTEX) -- CLPHY | Quote | Chart | News | PowerRating -- CLP Holdings said its first-half to June net profit dropped 8.5 pct year-on-year to 5.61 bln hkd due to absence of one-off items.

The power utility booked a gain of 1.03 bln hkd in the first half of 2007 from the sale of Ho-Ping power station in Taiwan to unit OneEnergy.

Operating earnings before one-off items in the six months to June this year increased 5.4 pct to 5.25 bln hkd, on the back of increased earnings from its electricity business, the company said.

Total revenue rose 11.6 pct to 27.53 bln hkd.

Earnings from its electricity business in Hong Kong increased by 7.6 pct to 4.04 bln hkd, with revenue from the segment growing 4.5 pct to 14.95 bln hkd.

But local electricity sales volume decreased by 1.5 pct over the same period last year, due to unusual weather and increased energy conservation awareness, it said.

Total power sales, including both local sales and sales to the Chinese mainland, declined by 4.0 pct to 15,633 GWh over the same period last year.

CLP's energy business in Australia recorded profit of 31.0 mln hkd, down sharply from 484 mln a year earlier.

Earnings from India increased to 263 mln hkd from 175 mln, while earnings from power projects in Southeast Asia and Taiwan was 75 mln hkd, down from 266 mln.

The company declared second interim dividend of 0.52 hkd per share.

Looking ahead, the company said it is difficult to predict future movements in coal and gas prices, but said it will continue to actively manage such costs through long-term fuel purchase agreements.

(1 usd = 7.8 hkd)

roby.lau@xfn.com

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