By Ronnie Harui

CLP Holdings Ltd.'s operating earnings fell 7.0% in the first half, largely owing to lower earnings from mainland China and Australia, despite a solid performance in Hong Kong.

Operating earnings, the power generator's favored profit metric, fell to 5.70 billion Hong Kong dollars (US$733.39 million) in the first half from HK$6.13 billion a year earlier. Net profit fell to HK$4.62 billion from HK$6.01 billion. The net figure accounts for one-off charges booked in its Australian business to settle longstanding litigation and to provision for the cost of ensuring safe operations at the Yallourn mine following effects of recent extreme rainfall, the company said.

Revenue rose to HK$40.73 billion from HK$38.70 billion.

Although the Hong Kong business remains robust, the outlook remains challenging, in particular due to market conditions in Australia along with continuing high coal prices affecting operations in mainland China, the company said.

The board is confident in the company's ability to be resilient amid the pandemic and continue with its strategy of decarbonization and digitalization, Chairman Michael Kadoorie said in a statement.

Write to Ronnie Harui at ronnie.harui@wsj.com

(END) Dow Jones Newswires

08-02-21 0131ET