Power giant CLP has recorded a 7.3 percent increase in its Hong Kong energy business in the first half of this year.

According to the power supplier, earnings for its Hong Kong energy business reached nearly HK$4.47 billion, compared with HK$4.16 billion recorded in the same period of last year.

However, the company saw an 8 percent drop, before fair value movement, in its total operating earnings, which stood at HK$5.22 billion.

Chief executive Chiang Tung-keung said the company’s overall performance was affected by challenges in the mainland and Australian markets.

The group’s mainland business dropped by nearly 12 percent to HK$870 million due to lower nuclear and renewable energy earnings.

In Australia, the group saw an almost 73 percent plunge in business due to a competitive retail landscape that lowered revenue at its subsidiary EnergyAustralia.

“Because of the intense competition, the margin has been squeezed,” Chiang said.

CLP, he added, is taking a number of steps to improve the situation and increase competitiveness in the retail business.

“The new default price has been published, which we see there is an increase," Chiang said.

"Together, we are going to recontract with some of our customers, so we do see our margin going forward will improve.

“Secondly, we are also embarking on a cost optimisation exercise so as to further optimise our cost to improve our performance.”

Chiang said the company’s board has declared a second interim dividend of HK$0.63 per share, unchanged from 2024.