Longyuan’s Profit Falls as Wind Power Output Declines
OREANDA-NEWS. August 25, 2014. China Longyuan Power Group Corp. (916), the nation’s biggest developer of wind farms, said first-half profit dropped 6.2 percent as calmer winds curtailed output and sales from its construction business tumbled.
Net income decreased to 1.37 billion yuan (USD223 million) from 1.46 billion yuan a year ago, the company said today in a statement to the Hong Kong stock exchange. Sales fell 6.9 percent to 8.99 billion yuan.
“Wind resources in the first half of 2014 were not as good as that in the corresponding period of 2013,” Longyuan said. The company also saw “a sharp decrease in the service concession construction revenue from the wind power business to 20 million yuan,” compared to 499 million a year earlier.
A worsening in wind conditions slowed the amount of electricity added even as its generation capacity increased. China Datang Corp. Renewable Power Co. last month said it may report a loss in the half because it was less windy in some areas.
Coal-power generation fell 10.8 percent in the half, while renewable energy power generation rose, Longyuan said last month.
The company’s shares fell 0.3 percent to close at HKD8.71 in Hong Kong before earnings were announced.
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