The Hong Kong-parent of EnergyAustralia, the country’s third-biggest electricity and gas supplier, would rather contract renewable power than build it from scratch, to mitigate what it predicts will be low returns on clean energy projects.

Operating earnings from the Australian business surged to $HK591 million ($119.3 million) for the year ended December 31, from a $HK182 million loss, said HK-listed CLP Group on Monday. Still, it warned of challenging conditions in retailing this year.