Datang Power Announces 2008 Interim Results Maintaining Profitability Despite Considerable Operating Pressure
Financial Highlights -- Consolidated operating revenue amounted to approximately RMB17,652 million, a year-on-year increase of 14.14%. -- Consolidated net profit attributable to equity holders of the Company amounted to approximately RMB406 million (2007 interim: RMB1,807 million). -- Basic earnings per share attributable to equity holders of the Company amounted to approximately RMB0.03 (2007 interim: RMB0.16).
HONG KONG, Aug. 26 /Xinhua-PRNewswire-FirstCall/ — Datang International Power Generation Co., Ltd. (”Datang Power” or the ”Company”) (HKEx: 991; SSE: 601991; LSE: DAT; ADR: DIPGY) announced the unaudited consolidated operating results of the Company and its subsidiaries and jointly controlled entities (the ”Group”) for the six months ended 30 June 2008 (the ”Period”).
During the Period, consolidated operating revenue of the Group was approximately RMB17,652 million, representing an increase of 14.14% over the corresponding period of 2007. Consolidated net profit attributable to equity holders of the Company was approximately RMB406 million, a decrease of 77.52% year-on-year. Basic earnings per share attributable to equity holders of the Company amounted to RMB0.03 (2007 interim: RMB0.16). The board of directors does not recommend the payment of any interim dividend for 2008.
Mr. Zhai Ruoyu, Chairman of Datang Power, said, ”In the first half of 2008, domestic power consumption continued to rise but at a slowing pace. Newly installed generation units increased but utilisation hours of power generation facilities were lower than that of the corresponding period last year. The imbalance in demand and supply of thermal coal was further aggravated by other negative factors including the domestic snowstorm, earthquake and suspension and safety rectifications of small coal mines. Thermal coal prices continued to surge to high levels with a marked deterioration in quality of thermal coal, which severely undermined the profitability of power generation companies. Facing such considerable operating pressure, the Group rigorously pushed ahead production and operation, and stringently controlled costs and expenses, with a view to conscientiously mitigating the impact of various factors that depressed profits, thereby maintaining profitability for the Company.”
In the first half of 2008, total power generation of the Group amounted to 62.2529 billion kWh, representing an increase of 11.08% when compared to the corresponding period last year. Total on-grid power generation amounted to 58.5987 billion kWh, an increase of 10.96% year-on-year. The increases in total power generation and on-grid power generation were mainly attributable to an increase in capacity of operational generating units of the Group, as well as the safe and stable operation of the generating units.
During the Period, the Company achieved remarkable results in energy savings and consumption reduction. Coal consumption was 332.47g/kWh, a decrease of approximately 4.5g/kWh over the corresponding period last year. Consolidated electricity consumption rate was 5.9%. On the other hand, the Company completed desulphurisation upgrade projects for a capacity of 3,900MW in total for its 15 generating units, thus enabling the installed capacity with desulphurisation facilities to account for 97.10% of the coal-fired generating units of the Group, or 100% of the coal-fired generation plants in the Beijing-Tianjin-Tangshan region.
In addition, the Company achieved a breakthrough during the Period in preliminary works with six projects approved by the State’s relevant authorities in respect of coal-fired power, hydropower, nuclear power and wind power. On coal-fired power projects, two 600MW generating units at Phase 4 of the Tuoketuo Power Generation Project and two 300MW generating units at the Jinzhou Thermal Power Project were approved. On nuclear power, four 1,000MW generating units at Phase 1 of the Ningde Nuclear Power Project was approved. On wind power projects, Phase 2 of the Shanxi Zuoyun Wind Power Project with a generating capacity of 49.5MW, Phase 1 of the Hebei Fengning Luotuogou Wind Power Project with a generating capacity of 48MW and the Shandong Dongying Wind Power Project with a generating capacity of 49.5MW were approved. Furthermore, in July 2008, two 300MW generating units at the Zhang Jia Kou Thermal Power Project, two 300MW generating units at Phase 2 of the Yungang Thermal Power Project and Phase 1 of the Inner Mongolia Hongmu Wing Power Project with a generating capacity of 48MW were approved.
Looking ahead into the second half of 2008, Mr. Zhai said, ”In 2008, the Company has a daunting task on maintaining stable and healthy development under a mixed condition with opportunities and challenges. Recently, the State raised the tariffs and made a temporary intervention in thermal coal prices, thereby effectively easing the pressure on the operations of the Group. However, the continuously tight supply and the significant increase in thermal coal prices still affected the production and profitability of the Group considerably. In addition, under the macro-economic control measures, the financing of the Group will face a challenging situation due to the State’s tightening monetary policies. The drop in utilisation hours of generating units has further imposed pressure on the operations of the Group. Facing a difficult operating environment, the Group will actively expand its room for development by fully utilising its advantages in resources, scale, geographical distribution and costs. It will implement the power generation increment plan, promote the preliminary works in an orderly manner and continue the implementation of the Company’s diversified development strategy, with a view to enhancing the profitability of the Company.”
Datang International Power Generation Co., Ltd.
Datang International Power Generation Co., Ltd. is one of the largest independent power producers in China. As at 30 June 2008, the Company’s total installed capacity in operation amounted to 22,896.7MW. The Company has been listed on The Stock Exchange of Hong Kong Limited and the London Stock Exchange respectively since March 1997. Since September 2001, the Company’s American Depositary Receipts (ADRs) have been traded in the U.S. over-the- counter market. The Company has been successfully listed on the Shanghai Stock Exchange since December 2006.
Please refer to the hyperlink below for the Extract of Consolidated Income Statement of the Company prepared under International Financial Reporting Standards:
http://xprnnews.xfn.info/Datang/20080826/Table.pdf For enquiries, please contact: Mr. Grant Zhang / Ms. Karen Chen Datang International Power Generation Co., Ltd. Tel: +86-10-8358-1428 / 8358-2217 Fax: +86-10-8358-1911 Ms. Edith Lui / Ms. Kitty Liu Rikes Hill & Knowlton Limited Tel: +852-2520-2201 Fax: +852-2520-2241
Datang International Power Generation Co., Ltd.
CONTACT: Mr. Grant Zhang or Ms. Karen Chen of Datang International PowerGeneration Co., Ltd., +86-10-8358-1428 or +86-10-8358-2217, or fax, +86-10-8358-1911; or Ms. Edith Lui or Ms. Denice Lee or Ms. Minie Li of RikesCommunications Limited, +852-2520-2201, or fax, +852-2520-2241, for DatangPower