CLP Holdings Limited Annual Results 2025: Key Highlights and Investor Insights

Overview

CLP Holdings Limited has released its audited annual results for the year ended 31 December 2025, providing a comprehensive review of its financial and operational performance. The company, a major player in the Asia-Pacific energy sector, continues to navigate a challenging global environment, focusing on reliability, sustainable growth, and decarbonisation.

Key Financial Highlights

• Operating Earnings: HK\$10,685 million, down 2.4% from 2024, mainly due to weaker performance from EnergyAustralia’s Customer business and reduced contributions from Yangjiang nuclear and renewable assets in Mainland China.
• Total Earnings: HK\$10,468 million, a decrease of 10.8% year-on-year, reflecting one-off items affecting comparability.
• Consolidated Revenue: HK\$88,018 million, down 3.2%, primarily attributable to lower generation volumes from Australian power stations.
• Dividends: Total dividends for 2025 were HK\$3.20 per share (up from HK\$3.15 in 2024), with a fourth interim dividend of HK\$1.31 per share declared. This signals confidence in CLP’s performance and ongoing commitment to shareholder value.

Operational Performance

Hong Kong – Core Market Strength

• Hong Kong continues to be the financial backbone of CLP. Operating earnings here increased 7.3% to HK\$9,544 million, driven by returns on capital investments and lower interest costs.
• Electricity sales dipped 1.0% to 35,760 GWh, but demand from data centres (+7.5%) and electric transport (+32.4%) grew strongly.
• Supply reliability was maintained at a world-class level (99.999%), even through extreme weather events and multiple typhoons.
• Average Net Tariff reduced by 2.6% from January 2026, easing household and business expenses.
• HK\$240 million from the Community Energy Saving Fund (CESF) supported subsidies and energy-saving initiatives for over 900,000 beneficiaries, with funding increased to HK\$270 million for 2026.
• Strategic investments included completion of smart meter installation, new substations for data centres, and the upgrade of the Clean Energy Transmission System (CETS) for increased non-carbon energy imports.
• Development of a 100MWh battery energy storage system (BESS) at Castle Peak Power Station commenced, with procurement underway.
• Feed-in Tariff Scheme approved 450MW of customer-installed renewable energy, equivalent to the annual consumption of 100,000 households.
• Major digital transformation: completion of the smart meter programme; Distribution Network Operations Optimisation project enhances real-time monitoring and control. AI is being deployed for real-time system monitoring and predictive maintenance.
• Strong partnerships and new contracts for decarbonisation services with banking and property sector companies.
• Expansion in EV charging infrastructure, with collaborations to develop over 600 charging points in Causeway Bay and fast charger schemes for bus depots and petrol station conversions.
• First LNG bunkering operation completed in Hong Kong, positioning the city as a green marine fuel hub.

Chinese Mainland – Renewable Growth and Policy Shifts

• Operating earnings fell 13.7% to HK\$1,598 million, impacted by lower nuclear tariffs at Yangjiang, increased competition, and grid curtailment for renewables.
• Commissioned 386MW of new renewable capacity: Bobai wind plant (150MW), three solar farms (total 236MW), and Guanxian BESS (100MW/200MWh).
• Five wind and solar projects totalling over 900MW under construction, including two of CLP’s largest wind projects.
• New policy from the Central Government: renewable projects commissioned after 1 June 2025 must fully participate in market transactions, increasing price volatility risk. CLP is focusing on offtake contracts and prioritising regions with better returns.
• RMB2.6 billion (HK\$2.9 billion) of onshore non-recourse project loan facilities secured for renewables at competitive rates.
• Outstanding national subsidy payments for legacy projects reduced to HK\$2,517 million, after record payments received.
• Impairment provision of HK\$608 million recognised for minority coal-fired assets due to lower dispatch.
• Exploring Panda bonds and clean energy funds to facilitate capital recycling and further investment.
• Strengthening climate resilience, especially for hydro assets after extreme flooding in Guangdong.

Australia – Retail Challenge and Storage Expansion

• EnergyAustralia’s operating earnings before fair value movements plunged 85.6% to HK\$85 million, mainly due to competitive retail market dynamics, increased transformation costs, and higher depreciation.
• Wholesale operations performed strongly, offsetting retail weakness.
• Customer accounts dropped by 83,000 to 2.3 million, with increased churn.
• Transformation programme underway to modernise technology infrastructure and achieve operational efficiencies.
• Expansion in battery energy storage: construction began on the Wooreen Energy Storage System (350MW/1,400MWh), financed by a A\$667 million syndicated loan and joint venture with Banpu Energy Australia. HK\$390 million gain recorded for JV introduction.
• Joint venture formed with EDF for Lake Lyell Pumped Hydro Energy Storage (385MW), with EIA submitted for approval.
• Mount Piper Stage 1 BESS (250MW/1,000MWh) supported by Federal Government’s Capacity Investment Scheme.
• Australia sets new emissions target: 62-70% reduction by 2035 (vs. 2005). EnergyAustralia commits to net-zero Scope 1 & 2 by 2050, and aims for Scope 3.
• Regulatory changes require retailers to offer free midday electricity to eligible customers and increase competitive pressures.
• EnergyAustralia fined for customer communications lapses and marketing claims, with remedial actions implemented.

India – Renewable Focus and Asset Sale

• Apraava Energy’s earnings dropped 32.8% to HK\$221 million, driven by impairment on a transmission asset, though renewables and delayed payment charges partially offset.
• Fully commissioned Sidhpur Wind Farm (251MW), Apraava’s largest renewable asset.
• Pipeline of new solar, wind, and transmission projects progressing, including advanced metering infrastructure (AMI) contracts covering 9.7 million smart meters.
• Agreed divestment of Jhajjar coal-fired Power Station (scheduled completion Q1 2026), significantly advancing CLP’s decarbonisation strategy.
• Expected commissioning of two transmission projects and new solar/wind assets in 2026-27 to add 2.1GW-equivalent of non-carbon capacity.

Taiwan Region and Southeast Asia – Stable Operations, Growth Ambitions

• Operating earnings decreased 31.2% to HK\$179 million, mainly due to lower fuel cost recoveries at Ho-Ping Power Station in Taiwan.
• Lopburi Solar Farm in Thailand saw lower output due to reduced irradiance and outages.
• CLP is actively seeking low-carbon growth opportunities in the region, including acquisitions, PPAs, and new renewable developments.
• Ho-Ping aims for reliable power generation beyond 2027, subject to PPA extension.

Strategic and Price-Sensitive Information

Dividend Increase and Financial Strength

• Dividend increase to HK\$3.20 per share (up 1.6%) signals management’s confidence and commitment to shareholder returns.
• Strong liquidity: HK\$25.5 billion of undrawn bank facilities and HK\$3.9 billion in bank balances at year-end.
• Successful refinancing and new capital raises, including US\$500 million perpetual capital securities, strengthening capital structure.
• Net finance costs reduced by 17.5% despite elevated interest rates.
• Net debt to total capital ratio steady at 33.0%.

Asset Impairments and One-Off Items

• Impairment provisions of HK\$608 million for minority coal-fired assets in China and HK\$345 million for planned closure of Yallourn Power Station in Australia in 2028 could impact future earnings and asset values.
• Gain of HK\$390 million from joint venture formation for Wooreen BESS in Australia.
• Divestment of Jhajjar Power Station in India in early 2026 will accelerate CLP’s coal exit and further reduce carbon intensity.

Decarbonisation and Regulatory Developments

• CLP’s Climate Vision 2050 continues to drive strategic decisions; emissions intensity reduced to 0.50 kg CO₂-equivalent/kWh, coal consumption down >10%.
• Policy changes in China require new renewables to fully participate in market transactions, increasing price volatility and risk.
• Australian regulatory reforms and emissions targets are reshaping market dynamics and may affect retailer margins.
• Hong Kong’s Protection of Critical Infrastructures Computer Systems Law effective January 2026, with CLP fully prepared for compliance.
• New emission allowances for CLP Power post-2026 will require further reductions in pollutants, implying continued investment in low-carbon technologies.

Corporate Governance and Management Changes

• Board and executive changes: Sir Rod Eddington retired as Independent Non-Executive Director; Mr Carlo Wolters appointed COO, Mr Vian Davys rejoined as Managing Director – Growth Markets.
• CEO T.K. Chiang’s tenure extended for leadership continuity.
• No purchase, sale, or redemption of listed shares in 2025.
• All directors and senior management confirmed compliance with securities dealing codes.

Risks and Outlook

• Ongoing challenges include competitive retail markets in Australia, evolving regulatory environments, and price volatility for renewables in China.
• CLP is well-positioned for growth, with strategic investments in decarbonisation, digital transformation, and expansion across Asia-Pacific.
• Dependable dividend and strong liquidity underpin shareholder value, but asset impairments and policy shifts could impact near-term earnings.
• Further reviews of Climate Vision 2050 targets planned for 2026 to align with latest science and policy changes.

Important Dates for Shareholders

• Fourth Interim Dividend: HK\$1.31 per share payable on 24 March 2026 to shareholders registered as at 13 March 2026.
• Annual General Meeting: Scheduled for Friday, 8 May 2026 at 11:00 a.m. Registration of transfers closes from 5 May to 8 May 2026.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. All figures and statements are based on the audited annual results and official company announcements for the year ended 31 December 2025. Investors should conduct their own analysis and consult professional advisors before making investment decisions. Past performance is not indicative of future results.

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