Hongkong Electric's profit down 16% in H1

Aug. 6, 2009 (China Knowledge) - HongKong Electric Holdings Ltd<0006>, announced that its profit declined 16% from a year earlier to HK$2.67 billion in the first half of this year due to the government's new pollution control incentive program, sources reported.

Earnings per share stood at HK$1.25 in the first half of this year, while dividends per share were HK$0.62.

During the first six months of this year, profit from Hong Kong operations plunged 35% year on year to HK$1.79 billion, while profit from operations outside Hong Kong surged 108.3% to HK$883 million.

The company's operating revenue declined 20% year on year to HK$4.72 billion in the first half of this year.

Electricity sales edged down 0.6% in the first half of this year compared with the same period of last year, while electricity sales for the full year is expected to maintain the same level with last year, said Fok Kin-ning, the company's chairman.

The Hong Kong government capped the company's rate of return on fixed-asset spending, which was formerly in the range between 13.5% and 15%, at 9.99% under an agreement that links power companies' returns to their efforts to reduce pollution. The agreement came into effect on Jan. 1 this year, and will remain valid until 2018.