Hong Kong-listed HK Electric Investments and HK Electric Investments Ltd. (HKELECTRIC-SS, 02638) reported FY2025 results marked by steady earnings, sustained shareholder payouts and continued progress on its decarbonisation-led capital programme.
Revenue and Earnings For the 12 months ended 31 December 2025, group revenue edged up 0.6 % year on year to HK$12.13 billion. EBITDA improved marginally to HK$8.75 billion (2024: HK$8.72 billion). Profit attributable to Share Stapled Unit (SSU) holders rose 1.2 % to HK$3.15 billion, translating into basic and diluted earnings of 35.64 cents per SSU (2024: 35.21 cents).
Distributions The Trustee-Manager declared a final distribution of HK16.09 cents per SSU, payable on 22 April 2026 to SSU holders on record as of 9 April 2026. Including the interim distribution of HK15.94 cents, the full-year payout remains unchanged at HK32.03 cents per SSU, matching the 2024 level. Distributable income totalled HK$2.83 billion, after a discretionary top-up of HK$52 million authorised by the board.
Cash Flow, Capital Expenditure and Balance Sheet Capital expenditure reached HK$4.19 billion, up 14.6 % from HK$3.66 billion in 2024, reflecting accelerated investment in the 2024-2028 Development Plan, notably the L13 gas-fired combined-cycle unit and three new oil-fired gas turbines. External borrowings stood at HK$50.56 billion, virtually flat year on year, while net debt edged down to HK$50.53 billion. The net debt-to-net total capital ratio held at 51 %. Undrawn committed bank facilities totalled HK$7.10 billion alongside HK$28 million in cash.
Operational Highlights • Supply reliability exceeded 99.9999 %, with average unplanned interruption below 30 seconds.
• Gas-fired generation accounted for 69 % of electricity output in 2025; commissioning of L13 in early 2029 is expected to lift the gas share to about 80 %.
• Smart meter rollout across the entire customer base is substantially complete, and Internet-of-Things and AI initiatives are underway to enhance grid monitoring, asset inspection and maintenance planning.
• Renewable generation, including customer-owned feed-in-tariff installations, contributed approximately 16 GWh during the year.
• Digital engagement accelerated, with 40 % of service transactions and 70 % of bill payments processed via electronic channels.
Tariff and Regulatory Environment Effective January 2026, HKEI’s Net Tariff decreased 2.2 % year on year to HK163.3 cents per unit, driven by a lower Fuel Clause Charge despite an uptick in the Basic Tariff to fund capital investments. The company continues to evaluate time-of-use pricing to support off-peak electric-vehicle charging.
Credit Profile Standard & Poor’s reaffirmed HK Electric’s long-term issuer rating at “A-” with a Stable outlook on 30 March 2025, sustaining a credit profile that underpins access to funding for its HK$7.24 billion pipeline of generation and network projects.
Strategic Outlook Management reiterated commitment to Hong Kong’s pathway to carbon neutrality by 2050, focusing on completing L13, replacing ageing gas turbines from 2027, enhancing climate resilience measures, and preparing for future zero-carbon energy imports while balancing reliability and affordability.