Financial Highlights

Group operating earnings increased 5.1% to HK$13,982 million driven by higher earnings from Australia and Mainland China partially offset by lower permitted rate of return in Hong Kong since October; total earnings decreased 4.9% to HK$13,550 million.

Revenue

Operating Earnings (Before Unallocated Expenses) by Asset Type

Total Earnings

Capital Investments

Dividends per Share & Total Dividends

Net Debt & Net Debt / Total Capital (%)

Operating Return on Equity (%) *

* Operating earnings / Average shareholders’ funds

TWO-YEAR SUMMARY

2018
2017
Increase /
( Decrease )
%
For the year (in HK$ million)
Revenue
Hong Kong electricity business
40,872
39,485
3.5
Energy businesses outside Hong Kong
49,793
52,101
(4.4)
Others
760
487
Total
91,425
92,073
(0.7)
Earnings
Hong Kong electricity business
8,558
8,863
(3.4)
Hong Kong electricity business related 1
227
335
Mainland China
2,163
1,238
74.7
India
572
647
(11.6)
Southeast Asia and Taiwan
162
160
1.3
Australia
3,302
2,738
20.6
Other earnings in Hong Kong
(92)
(65)
Unallocated net finance costs
(54)
(2)
Unallocated Group expenses
(856)
(607)
Operating earnings
13,982
13,307
5.1
Items affecting comparability
Property revaluation
18
369
Impairment provision
(450)
－
Reversal of tax provision
－
573
Total earnings
13,550
14,249
(4.9)
Net cash inflow from operating activities
23,951
24,417
(1.9)
At 31 December (in HK$ million)
Total assets
230,514
228,151
1.0
Total borrowings
55,298
57,341
(3.6)
Shareholders' funds
109,053
108,697
0.3
Per share (in HK$)
Earnings per share
5.36
5.64
(4.9)
Dividends per share
3.02
2.91
3.8
Shareholders' funds per share
43.16
43.02
0.3
Ratios
Return on equity 2 (%)
12.4
13.8
Net debt to total capital 3 (%)
25.5
27.8
EBIT interest cover 4 (times)
10
11
Price / Earnings 5 (times)
17
14
Dividend yield 6 (%)
3.4
3.6
Notes:
  1. Hong Kong electricity business related includes PSDC, Hong Kong Branch Line and sales to Guangdong from Hong Kong
  2. Return on equity = Total earnings / Average shareholders’ funds
  3. Net debt to total capital = Net debt / (Equity + advances from non-controlling interests + net debt). Debt = Bank loans and other borrowings. Net debt = Debt - bank balances, cash and other liquid funds.
  4. Earnings before interest and taxes (EBIT) interest cover = Profit before income tax and interest / (Interest charges + capitalised interest)
  5. Price / Earnings = Closing share price on the last trading day of the year / Earnings per share
  6. Dividend yield = Dividends per share / Closing share price on the last trading day of the year

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