CLP Australian Asset Writedowns: An Added Impetus For Diversification

Hong Kong-based CLP Holdings , the parent company of Australian power producer TRUenergy , has announced that it will write down the value of its Australian carbon-emitting assets by AUD245mn (US$246mn) following passage of the Australian government's Clean Energy legislative package in November. BMI believes that there is a potential for further writedowns on CLP's Australian assets over the coming years given the numerous uncertainties surrounding the carbon legislation. We further note that these uncertainties are creating added impetus for CLP to increase its exposure in other markets, such as India.

To read the full article, please choose one of the following options: