Datang Renewables Profit Doubles on Higher Wind-Power Production
China Datang Corp. Renewable Power Co., a wind project developer, said first-half profit more than doubled as increased grid capacity allowed output to expand.
Net income rose to 231 million yuan ($38 million) from 103 million yuan a year earlier, the Beijing-based company said today in a filing to the Hong Kong stock exchange. Sales gained 35 percent to 2.76 billion yuan.
The company is “actively expanding electricity capacity potential,” Datang Renewables said. Its wind-power generation jumped 38 percent as installed capacity rose 5 percent.
A slowdown in Chinese wind-farm development is easing grid congestion and boosting operators’ profits as projects are able to generate power closer to their installed capacity. Wind-power installations in the nation may fall 6 percent to 13 gigawatts this year, according to Bloomberg New Energy Finance estimates.
Datang Renewables climbed 5.7 percent to close at HK$1.67 in Hong Kong trading today before the results were announced.
While 19 percent of the company’s wind-power production went to waste in the first half because the grid couldn’t accept it, that’s 7 percentage points lower than a year earlier, the statement shows.
The reduction in network congestion has also benefited domestic competitor Huaneng Renewables Corp., which said Aug. 20 that first-half profit more than doubled to 646.1 million yuan from a year earlier.