CLP fuel costs will increase or will increase electricity prices

In the first six months, profit attributable to CLP's controlling shareholders increased by 12% to 3.767 billion yuan. Vice President of China Light and Power Co., Ltd. said that the price of power generation fuel will fluctuate significantly in the second half of the year, and in the face of rising fuel costs, there will be upward pressure on electricity prices. When asked about the progress of the electricity tariff system, she thinks that the current electricity tariff structure reflects costs and the mechanism is simple. If there are any changes, we must first consult.

In recent years, CLP has been keen to expand its international power market to achieve the goal of diversifying its business portfolio. However, the successful development experience in Hong Kong has not allowed CLP to be used in other parts of the world. During this period, the operations in Australia and India have been plunged into loss-making operations. In contrast, the Hong Kong business continues to play an important profit pillar. CLP yesterday unveiled its interim results. During the period, revenue was 51.7 billion yuan, up 12% year-on-year, and profit attributable to shareholders was 3.767 billion yuan, an increase of 12%. As of the end of June, the electricity tariff stabilization fund has dropped to 12 million yuan, compared with 712 million yuan at the end of last year.

In terms of operating performance across all regions, Hong Kong's business contributed 3.454 billion yuan in profit for the first six months, up 8%, and the Mainland China business grew even more strongly, rising 12% to 790 million yuan. As for Australian business, the amount of losses in the first half of the year narrowed to 87 million yuan, which was a significant improvement over the loss of 273 million yuan in the same period of last year; operating profit before deduction of non-recurring items was 45 million yuan, from profit to loss, compared with the same period last year. 268 million yuan. The loss in India's business has been significantly expanded to 212 million yuan, a 10-fold increase year-on-year.

Earn 3.7 billion in 12 months and increase 12%

As for the business prospects in Australia, Bao Lixian, who will be retiring from the CEO and CEO of the company, admitted frankly that it will not be possible to see that the power generation business in Australia will improve in the next six months. It can hardly be said that it will be able to reverse the disadvantages in the next year or two. However, in the medium to long term, people can still feel optimistic and hope that shareholders can wait patiently. Bao Lixian continued that the Australian wholesale contract price fell significantly, mainly due to the early rise of the Australian dollar exchange rate, which indirectly led to the closure of local factories and the decline in industrial electricity demand. Regarding the separate listing of the Australian power plant in the spin-off, Bao Lixian said that according to the current situation, it is not the timing of spin-off.

In terms of operations in India, Su Shaoqi said that due to lack of coal supply, the Hager power plant has less than 40% availability in the first half of the year, and has now obtained approval from the local government to import 1.7 million tons of electricity from June of this year to May next year. Coal, so that the availability of power plants rose to 85% last month, hoping to maintain the 75% to 80% level in the second half.

Referring to the negotiations with the Hong Kong Government on the mid-term review of the control plan, Lan Lingzhi, the president and CEO of the designated Power Group, said that he hopes that Hong Kong will have a safe, reliable and environmentally friendly energy supply. There is no discussion on the issue of tariff adjustment yet. Observe that Next quarter sales. Su Shaoshao added that the fuel price is expected to fluctuate in the second half of the year. Under the rising fuel prices, CLP will have to increase its pressure. When asked whether it would introduce a progressive tariff system, she responded that the current tariff determination is a reference cost and the mechanism is highly transparent and very simple. If you want to change the current mechanism, you need to consult first.

Sui Shaoshao also mentioned the issue of the source mix of imported electricity. She said that nuclear power now accounts for one-third of China National Electric's fuel mix, which accounts for about 23% of the total power generation fuel mix in Hong Kong. Whether nuclear power will be increased in the future will depend on the attitude of the Hong Kong government. CLP hopes to complete the 17% stake in the Yangjiang nuclear power project in the second half of the year.