HK Electric's shares cited one of 2008's best

Hongkong Electric increased profitability in both its local and international operations in 2008.

Hong Kong operations increased by 4.2 percent to US$904 million in 2008 from US$868 million in 2007, while international operations increased by 41.6 percent to US$131 million in 2008 from US$93 million in 2007.

The company credits its strong financial position and conservative investment profile with the company’s shares being one of the best performing in the Hang Seng Index for 2008.

"We have sought to increase the proportion of the Group’s earnings derived from its activities outside Hong Kong and good progress was made in this regard in 2008," said a HK Electric statement.

A significant step was taken by the company in February 2009 when it announced the purchase of 45 percent equity interests in three joint ventures owning power plants in China, two of which are located in Zhuhai in Guangdong province adjacent to Hong Kong. The transaction, upon completion, will allow the company to take a strategic stake in the electricity generation business in China at an attractive return and will enhance the earnings from the Group’s international operations.

In December, the Hong Kong Government approved the Development Plan of The Hongkong Electric Co., Ltd. (HEC) for the period 2009-2013 which provided for approximately $1.5 billion in capital expenditure over that period. This investment will be focused on additions to and maintaining the reliability of their transmission and distribution network and in furthering their emission reduction programme at the Lamma Power Station.

Supply reliability was maintained at over 99.999% in 2008.