Datang Renewable Doubles First-Half Profit on Higher Sales
Stock Chart for China Datang Corp Renewable Power Co Ltd (1798)
China Datang Corp. Renewable Power Co., a unit of the nation’s second-biggest electricity producer, doubled first-half profit on increased sales of wind power.
Net income was 415.9 million yuan ($65 million), compared with 202.6 million yuan a year earlier, the unit of China Datang Corp. said today in a filing to the Hong Kong stock exchange. Sales increased to 1.86 billion yuan from 1.04 billion yuan.
The company “maintained its rapid growth momentum,” according to the statement, as it seeks to increase wind-power capacity and develop other renewable resources.
China, the biggest energy consumer, set provincial quotas for wind energy to ease pressure on electricity grids, enabling project developers to increase their revenues. The country is aiming to install 110 gigawatts of wind capacity by 2015.
“Datang Renewable’s significant increase in its accumulated wind power generation for the first half of 2011 was primarily attributable to its additional installed capacity last year,” said Lynda Peng, an analyst at BOCOM International Holdings Co.
While consolidated wind power capacity rose 52 percent to 4.1 gigawatts by June 30 from a year earlier and the full-year target is for 5.5 gigawatts, approval for projects is becoming more difficult, the Beijing-based company said in the statement.
Datang Renewable is diversifying into solar power as the government pushes to develop the industry. The company last month won approval from the Jiangsu Development and Reform Commission for a 2-megawatt rooftop solar power project.
To contact the editor responsible for this story: Reed Landberg at firstname.lastname@example.org.
Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.