By Ronnie Harui

CLP Holdings Ltd. swung to a net loss in the first half of the year, largely due to a fair-value loss on energy-hedging contracts in Australia of about US$1.01 billion that was triggered by unprecedented market volatility.

The Hong Kong-listed power company reported a net loss of 4.855 billion Hong Kong dollars (US$$618.5 million) for the January-to-June period. That compares with a net profit of HK$4.615 billion for the same period a year earlier.

Revenue rose to HK$47.59 billion from HK$40.73 billion.

"Despite a strong performance in Hong Kong and from the zero-emission portfolio in mainland China, group operating earnings before Australia's unfavorable fair-value movements decreased 25.4% to HK$4.111 billion, mostly due to lower earnings from our generation portfolio in Australia and continued high coal prices," the company said in its filing to the Hong Kong Exchange.

In the second half, the global energy industry is expected to continue facing changing and challenging dynamics, CLP Chairman Michael Kadoorie said in a statement.

However, the company remains optimistic about opportunities in its core markets of Hong Kong and the Greater Bay Area, and beyond, serving a growing need for the electrification of carbon-intensive industries and stronger demand for energy solutions, the chairman added.


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


(END) Dow Jones Newswires

08-08-22 0052ET