Datang Power Announces 2013 Annual Results - Pimagazine Asia
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Datang Power Announces 2013 Annual Results

Net Profit Surges 82.10% to RMB4,088 Million

Better Deployment and Cemented Advantage

HONG KONG, March 26, 2014 /PRNewswire/ — Datang International Power Generation Co., Ltd. (“Datang Power” or the “Company”)(991:HK; 601991:SH; DAT:LN; DIPGY:US) announced the audited consolidated operating results of the Company and its subsidiaries (the “Group”) for the year ended 31 December 2013 (the “Year”).

In accordance with the International Financial Reporting Standards, Net profit excluding extraordinary gains and losses was RMB4,088 million, representing an increase of approximately 82.10%. However, due to factors including decrease in investment returns, decrease in on-grid electricity, increase in fixed cost, provision for fixed asset impairment and the State’s reduction on on-grid electricity price, operating revenue of the Group for the Year was approximately RMB75,227 million, representing a decrease of approximately 3.06% as compared to the previous year. Total profit before tax amounted to RMB8,098 million, representing an increase of approximately 7.35% as compared to the Previous Year. Net profit attributable to equity holders of the Company was approximately RMB3,529 million, representing a decrease of approximately 12.19% as compared to the Previous Year. Basic earnings per share attributable to equity holders of the Company amounted to approximately RMB0.27. The board has recommended the distribution of a final dividend of RMB0.12 per share (tax included) for the year of 2013.

The management of Datang Power stated that, “In 2013, the Company continued to adhere to value-focused and efficiency-oriented principles to strive to improve management and efficiency, accurately seize market changes and trends, so as to give prominence to its strengths in operating its core power generation businesses and fully optimize its business structure. During the Year, the Company showed healthy signs of overall development and operational conditions, and achieved sustainable and healthy development.”

Business Review

In 2013, the Group’s power generation maintained a stable production, however due to the slowdown of economic growth, cumulative on-grid power generation amount to 191.8671 billion kWh and 181.4230 billion kWh respectively, representing a slight decreased by approximately 2.19% and 2.23% respectively.

The Group adhered to focus on economic operation of power generation facilities, therefore the Group enhanced technological renovation on energy conservation and strengthened facilities treatment to facilitate energy conservation, and achieved remarkable results. In 2013, total coal consumption for power supply was 313.77 g/kWh, representing a year-on-year decrease of 3.54 g/kWh. Electricity consumption rate of power plants was 4.27%, representing a year-on-year decrease of 0.29%. The total desulfurisation facilities operation rate and the total overall desulfurisation efficiency rate amounted to 99.88% and 94.47%, respectively. The Group’s emission rates of sulfur dioxide, nitrogen oxides and waste water were 0.34 g/kWh, 0.84 g/kWh and 0.038 kg/kWh respectively, representing a year-on-year decrease of 8.11%, 31.15% and 24%, respectively. The emission rate of smoke ash was 0.10 g/kWh, which was the same level as previous year. During the Year, a total of 30 power generating units of certain power generation companies of the Company carried out denitrification transformation projects.

During the Year, the Group achieved breakthrough in progress of preliminary works. The Group obtained official approvals on 20 power generation projects, including 3 thermal power projects, 9 wind power projects, 7 photovoltaic projects, and 1 hydropower expansion project, with a total approved capacity of 4,330 MW. The Company also focused on optimizing its designs with an aim to develop high quality projects. During the reporting period, the Company added 1,240 MW of installed capacity for clean or renewable energy. During the Year, Pengshui Hydropower Station was awarded the “Luban Award” for construction projects of China while Keqi Coal-based Natural Gas phase one was awarded the “Chemical Industry Construction Quality Award” and Lvsigang Power Generation Project was awarded the “State Quality Investment Project Award”.

Meanwhile, the Group continued to expand power-related upstream and downstream projects. The Duolun Coal Chemical Project with an annual output of 460,000 tonnes of polypropylene, the Keqi Coal-based Natural Gas Project with an annual output of 4 billion cubic meters of natural gas, and the Fuxin Coal-based Natural Gas Project with annual production scale of 4 billion cubic meters of natural gas, being constructed by the Company with controlling interests, achieved initial success. Among the projects, the Duolun Coal Chemical Project produced 213,023 tonnes of polypropylene, 68,721 tonnes of BTX aromatics and 46,979 tonnes of LPG. As for Keqi Coal-based Natural Gas Project, plants of Phase One was successfully put into operation and officially included in piped natural gas network to transport clean coal-based natural gas products. Phase Two of the project also made good progress. The Fuxin Coal-based Natural Gas Project proceeded smoothly as scheduled. Meanwhile, the Phase 1 project of Shengli Open-cut Coal Mine East Unit 2 in Shengli area of Inner Mongolia, developed and constructed by the Company, reached 10 million tonnes; Phase 2 project with an annual production capacity of 20 million tonnes is currently undergoing construction of infrastructure as scheduled. The preliminary development works of the Wujianfang Coal Mine, the Kongduigou Coal Mine and the Changtan Coal Mine carried out by the Company in Inner Mongolia region proceeded in an orderly manner. The successful development of the above-said coal mine projects would also increase the coal self-sufficiency ratio of the Company.

Outlook

Looking forward to 2014, the State will fully implement a comprehensive overall reform plan. This will further boost internal dynamic and vitality of domestic economic development, enabling energy enterprises to achieve continuous expansion of scientific development. In the meantime, electricity and coal price will remain at a low level and full implementation of tax reform policies will reduce enterprises’ tax burden. In general, power enterprises will remain in the stage of the operational improvement. Under the situation, the growth in power generation and the prices of coal market may be affected; which will possibly challenge the Group’s business.

The management of Datang Power pointed out that, “In face of opportunities and challenges, the Company will cement the competitive advantage of power generation business, improve the profitability of the nonpower generation segment, speed up the progress of optimizing business structure, enhance corporate image, and open a new chapter for the Company’s development, by upholding its value and efficiency-oriented philosophy, insisting on the very basis of safety and stability, setting the realisation of economic benefits as the major goal and ensuring solid execution. The Company will further enhance production safety management, step up capital efforts, continue to intensify energy conservation and emissions reduction and comprehensively strengthen risk prevention and control. The Group will aim to enhance the profitability of the Group and, with its synergistic diversifications advantages to seize opportunities to generate maximum returns for the shareholders.”

Datang International Power Generation Co., Ltd. (991:HK; 601991:SH; DAT:LN; DIPGY:US)

Datang International Power Generation Co., Ltd. is one of the largest independent power producers in China and the first Chinese power company list in Hong Kong, London and Shanghai simultaneously. Its American Depositary Receipts are traded in the U.S. over-the-counter market. The Company is principally engaged in the construction and operation of power plants, the sale of electricity and thermal power, the repair, testing and maintenance of power generating facilities and power-related technology services. Currently, the Company manages over 100 wholly-owned and holding power generation companies or other project companies, which are located in over 18 provinces/municipalities/autonomous regions in China. As at 31 December 2013, the Company’s total installed capacity in operation amounted to 39,187 MW.

For more information, please visit the Company’s website: http://www.dtpower.com/.

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