CLP to consider listing India unit

Written by Reuters | Hong Kong | Updated: Feb 28 2012, 08:39am hrs
Power utility CLP Holdings said on Monday that it will consider listing its India business to raise funds for further expansion.

Our Indian business may at some stage make demands on CLP Holdings capital on a scale beyond what we are prepared to fund ourselves, CLP said in its 2011 annual report. In due course, we will consider a local listing.

The company added that it was too early to provide an estimate on the timing or size of the possible listing.

The company also said it might bring in partners on future projects in India to ease capital commitments.

CLP said operating earnings from India in 2011 totalled HK$154 million, compared to HK$141 million in 2010. CLP entered the Indian market in 2002 with the acquisition of a majority stake in Gujarat Paguthan Energy Corp (GPEC), and assumed full ownership of the business in 2003.

Operating through wholly-owned CLP India, CLP Holdings investments in India have totalled about 2,614 MW covering renewable energy, coal-fired and gas-fired generation. GPECs earnings rose to HK$391 million in 2011 from HK$247 million in 2010, CLP said, adding, however, that GPECs short-term earnings outlook was clouded by uncertainty over supplies of natural gas. CLP Holdings net profit for 2011 fell 10% y-o-y to HK$9.29 billion on an impairment loss for a coal-fired plant in Australia as a result of a new Australian carbon tax law.