Hong Kong-headquartered CLP Holdings anticipates a non-cash impairment charge of approximately HK$5.9 billion ($1.14 billion) on the goodwill of EnergyAustralia's customer business for the year ended Dec. 31, 2023.
The impairment will not impact operating earnings but is expected to significantly reduce CLP's total earnings for 2023.
CLP's operating financial performance has been robust, with unaudited consolidated management accounts projecting operating earnings of around HK$10.1 billion ($1.10 billion), up over 30% from 2022.
Total earnings before the goodwill impairment are estimated at approximately HK$12.5 billion ($2.24 billion).
The EnergyAustralia customer business faced challenges due to adverse market trends, including shrinking margins and increased competition.