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CHAIRMAN’S STATEMENT
4
HK Electric Investments
Powering Today for a Cleaner Future
Against a backdrop of transformation affecting the power sector both in Hong Kong
and globally, HK Electric has always remained committed to delivering highly reliable
electricity at affordable prices. Our century-old commitment to Hong Kong people is
as strong as ever as I present the 2016 interim results for HKEI, which holds a 100%
interest in the operating company HK Electric.
During the six months under review, HK Electric engaged with the HKSAR Government
to review and discuss ways to improve the future regulatory framework that will
guide the sector upon the expiry of the current Scheme of Control Agreement (SCA).
It is our view, also reflected by the majority of the respondents to the Government’s
public consultation exercise held last year, that the current framework has performed
well. It has achieved the Government’s energy policy objectives of safety, reliability,
affordability and environmental protection by encouraging prudent and necessary
long-term investments. We expect that a satisfactory outcome in the best interests of
Hong Kong going forward will be achieved.
Half Year Results
For the six months ended 30 June 2016, HKEI’s EBITDA amounted to HK$3,817 million
(2015: HK$3,789 million) and unaudited profit attributable to holders of Share Stapled
Units (SSU) was HK$1,101 million (2015: HK$1,205 million).
Interim Distribution
The Board of the Trustee-Manager has declared an interim distribution of HK19.92
cents (2015: HK19.92 cents) per SSU, payable on 19 August 2016 to SSU holders
whose names appear on the Share Stapled Units Register on 10 August 2016.
Moving Towards Increased Use of Natural Gas
During the six months under review, HK Electric progressed some key initiatives in
support of the Government’s policy to increase the proportion of natural gas in the
fuel mix to about 50% by 2020. This change in the fuel mix will also help us play a
part in the battle against climate change following a global consensus reached in the
Paris Climate Change Conference (COP21) held in December 2015.
Construction of the new L10 combined cycle gas-fired unit commenced in January.
Piling work has made good progress and is 45% complete. Tendering for the
superstructure work and building plan submissions are underway. L10 is scheduled for
commissioning in 2020.